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Russia's Oil and Gas Output Predicted to Fall in 2023

On Wednesday, Russian Energy Minister Nikolai Shulginov announced that the nation's oil and gas production would decline in 2023. This comes from pressure from Western restrictions and fewer European buyers.

Nikolai Shulginov, Russian Energy Minister
Nikolai Shulginov, Russian Energy Minister

Western Sanctions and Price Cap Impact Exports

Since sending troops into Ukraine over a year ago, Russia has significantly reduced its energy exports. This is partly due to the imposition of Western sanctions and a price cap on Russian oil.

Diverting Oil to India and China, Output Cut Planned

Although Russia has been able to redirect some of its oil to major buyers like India and China, Moscow announced in February that it would cut output by 500,000 barrels per day in response to the price cap.

Voluntary Production Cut to Lower 2023 Output

Shulginov, while addressing the State Duma, noted that oil production levels in 2023 are expected to be lower, partially due to the voluntary production cut, as reported by the TASS news agency.