Russian authorities will not oblige oil companies to reduce production

Russian authorities will not draw up a decree obliging energy companies to reduce oil production, as proposed by Lukoil, as not having such powers., according to the statement of the Deputy Prime Minister Arkady Dvorkovich. In early December, Leonid Fedun, vice president of strategic planning in Lukoil, said that the company relies on the government, with its decree to oblige energy companies to lower production under the agreement with OPEC.

“The government has no such authorization. There is no international treaty that would give such an opportunity”, said Russian Deputy Prime Minister, Arkady Dvorkovich. “Who and how controls whether the deal is respected or not?”, asked he.

At the official meeting on November 30, the OPEC member countries agreed to lower yields in the organization with 1.2 million barrels per day to 32.5 million barrels per day. The agreement provides for the reduction of production by 0.6 million barrels per day in countries that are not members of the cartel, which include Russia.

Moscow agreed to provide half of this decrease, ie to shrink oil production by 0.3 million barrels per day.

OPEC calls on December 10 in Vienna, another 14 countries that are not members of the group, and then will discuss measures to stabilize the oil market.

On Wednesday, the press center of the Russian Ministry of Energy reported that the meeting with Minister Alexander Novak, all the invited companies have agreed to reduce production.

more recommended stories