Page 152 - RusRPTApr23

anticipated levels of demand.
Crude exports recovered quickly after the embargo was imposed, but products are not. Russia will continue to reduce its oil production by 500,000 barrels per day until July, Deputy Prime Minister Alexander Novak told reporters on March 21. “The decision on a voluntary reduction of production by 500,000 barrels per day will be in effect through June 2023,” he said. He also said that Russia was close to the reduction target, and that the level should be achieved in a few coming days. In February, Novak said that Russia would voluntarily reduce its production by 500,000 barrels per day in March following introduction of the price caps on Russian oil and oil production by the West. The decision will help restore market relations, he said then.
● Production
Russia will not significantly reduce the volume of oil refining in March, despite the restrictions imposed by Western countries on February 5 - an embargo on fuel supplies by sea, as well as price caps, according to the analytical report of the Energy Development Center.
Oil production increased by 1.9% to 534mn tonnes in 2022, according to Rosstat in February. The increase in production was mainly due to the growth of export deliveries. According to Energy Minister Alexander Novak, oil exports increased by 7.6% to 242mn tonnes. At the same time, domestic consumption decreased - primary oil refining at Russian refineries decreased by 3.4% to 275.5mn tonnes.
Export growth was due to the reorientation of supplies from the gradually
152 RUSSIA Country Report Russia April 2023 www.intellinews.com