Russia’s oil production is on track to drop to an 18-year low this year as western sanctions and leaving foreign oil companies over the war in Ukraine weigh on the major fuel supplier.
Finance Minister Anton Siluanov told reporters Wednesday that Russian oil output could decline by an estimated 17% in 2022.
“How sales will be conducted further is difficult to asses now,” Siluanov was quoted as saying by the state-run TASS news agency.
Russia generated almost 11 million barrels per day before the war, making it the world’s third largest producer.
Siluanov’s projection means Russia could end up producing 9.13 million barrels per day this year, the lowest since 2004.
Oil output could drop as low as 8.76 million barrels per day — an almost 20-year low — when compared with 10.54 million barrels per day generated in 2021.
President Vladimir Putin has vowed to find alternative markets for Russia’s energy exports as the Russian oil dependent European Union debates a possible embargo.
Russia’s energy minister has warned that a ban on Russian oil would lead to “catastrophic” consequences for the global market.