Russia's oil production in 2022 may fall by 17% amid West's sanctions: Russian Finance Min

Russia’s oil production this year could decline by as much as 17% because of Western sanctions, country’s Finance Minister Anton Siluav said on Wednesday. In wake of Moscow’s “unprovoked” invasion of Ukraine, US and Canada have imposed an embargo on Russian oil imports. Meanwhile, European Union (EU) has vowed to phase out oil imports in upcoming months and has already agreed on its sixth pack of sanctions encompassing plans to do same.

“Will re be a decline in [oil] production? re will be. In what volumes? Seventeen per cent, a little less, a little more, it's possible” Anton Siluav told reporters on Wednesday. "It is still difficult to assess how energy sales will continue,’ he added.

Europe is a major customer of Russian oil. Earlier, International Energy ncy forecast predicted that almost three million barrels a day will be turned off starting in May. That would reduce output to fewer than nine million barrels a day, a larger pullback than or analysts have predicted. Regardless, President Vladimir Putin had, earlier this month, threatened to redirect considerable oil supplies from Europe to Asia.

Oil embargo

sixth pack of sanctions against Russia may include some form of an oil embargo, Executive Vice President of European Commission (EC) Valdis Dombrovskis said. As bloc moves forward to completely phase out Russian coal by August, top EU official emphasised that it was necessary to make sure dam to European Union’s member states is minimised. bloc has imposed five packs of sanctions on Russian Federation till w, largely scaling down its business in Europe.

"We are working on a sixth sanctions pack and one of issues we are considering is some form of an oil embargo. When we are imposing sanctions, we need to do so in a way that maximizes pressure on Russia while minimizing collateral dam on ourselves," Dombrovskis told Times.

However, he stopped short of disclosing details of oil embargo but said that it could eir include a gradual phase-out or imposition of tariffs beyond a certain price cap.

(Im: AP)