Oil production in Russia is stable, as companies have reconfigured their supply chains, Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya-24 TV channel.
"In the oil industry, we [authorities] helped to provide insurance, make payments with friendly countries, and transfer to national currencies. As a result, during the year, by May-June, the situation had stabilized, our production leveled off, and reached the same level as in January-February. <…> Stable production continues to this day, as companies have reconfigured their supply chains and agreed on payments," he said.
By the end of 2022, Russia will increase oil production by about 2%, to 535 million tons, and the output of oil products will increase by 5%, Novak said.
He stressed that Russia will not supply oil and oil products to countries in compliance with the price cap. Not only will Russia ban supplies to countries that require compliance with a Western-imposed price ceiling, but it could cut oil production by 500-700 bpd in early 2023, Novak said.
