Oil production in Russia will not contract in coming years and will stabilize at the current year’s level, Russian Deputy Prime Minister Arkady Dvorkovich said on Monday.
The Russian government will render support to oil companies, including oil major Rosneft, for the launch of new oil deposits amid western sanctions, the vice-premier said. “The extraction volumes will not contract. We plan to keep output at this year’s level,” the vice-premier said.
Russia’s oil production at traditional oilfields is, indeed, contracting, but new deposits are being launched, Dvorkovich said. “Also, we offer tax privileges to stimulate additional oil extraction from oil deposits and hard-to access reserves. These additional privileges are included in the tax maneuver. Companies say they are capable of making up for a fall in oil output,” the vice-premier said.
The Russian government will render support to oil companies, he said. “We’re considering taking financial decisions to support particular companies, first of all, the largest company Rosneft. I wouldn’t comment on the volume of support but this aid is under consideration and this will help stabilize output for Rosneft as well.”