Novak announced a voluntary reduction in oil supplies in August

Russia will voluntarily cut oil exports by 500,000 bpd in August. This was announced by Deputy Prime Minister of the Russian Federation Alexander Novak.

“As part of efforts to balance the market, Russia will voluntarily cut supplies to oil markets by 500,000 bpd in August by cutting exports by the designated amount,” he said.

The office of the Deputy Prime Minister explained to Vedomosti that we are talking about an additional reduction in oil production in August by 500,000 barrels per day

In February Novak declaredthat Russia will voluntarily reduce oil production in March by 500,000 barrels per day. The Deputy Prime Minister explained that such a step would contribute to the “restoration of market relations” in the face of sanctions, and further decisions on production volumes would depend on the “situation on the market.”

In April, Deputy Prime Minister clarifiedthat Russia has decided to extend the voluntary oil cut until the end of 2023. In early May, he confirmed that the Russian Federation continues to adhere to a 500,000 bbl/d oil production cut from February 2023 levels. 17 May Novak notedthat since this month Russia has reached the level of reducing oil production by 500,000 barrels per day

On May 2, Bloomberg wrote that, despite Moscow’s statements about the reduction in oil production, “signs of a noticeable drop in oil exports” are allegedly not observed. Novak on these posts answeredthat journalists did not take into account the “substantial reduction” of pipeline supplies to the EU. According to him, the volume of such supplies fell “by more than two-thirds.” It was only partially compensated for by maritime exports, the Deputy Prime Minister added.