Putin spoke about the good state of the Russian oil and gas market

The Russian oil and gas market is in good condition and has excellent development prospects. President Vladimir Putin announced this at the SPIEF plenary meeting.

“In general, the Russian oil and gas market is in good condition and has excellent development prospects,” the president said.

Putin noted that decisions are being made that limit the work of companies. But the joint decisions of OPEC + minimize the consequences for the world economic community and energy markets that are possible when making politically motivated decisions in the field of the economy.

“All OPEC+ decisions, including production cuts, are of a depoliticized nature, they are not related to Russia’s special operation or any other opportunistic considerations, they are related to issues of economic feasibility… Through joint efforts, we manage to balance the market,” Putin stressed.

However, the restrictions have negative consequences for Russia as well, the president added. “But, firstly, these are different discounts for different markets. In some cases, discounts are minimal. Secondly, as I said, all these discounts in one way or another affect the global price situation and, on the whole, are at a level that suits us quite well. Production is growing, it suits us inside the country. Sales volumes are decent. Yes, it affects budget revenues, of course. Both gas prices and volumes of gas sales to well-known markets, primarily European ones… Well, there is a gradual replacement. We do not see any catastrophe. This makes our companies act more energetically, look for new logistics and partners. They find it,” the President stated.

On June 4, the ministers of the OPEC+ countries met, at which they agreed to reduce the quota for oil production from the current level by 1.6 million barrels per day from January 1, 2024. The total quota will be 40.46 million barrels per day. The quota for oil production for Russia will be significantly reduced – by 650,000 barrels per day and a number of other countries.

The total amount of oil and gas revenues expected in Russia in 2023 is 8.9 trillion rubles, of which the so-called basic ones are 8 trillion rubles. As a result of May, the budget received less than 30.6 billion rubles. oil and gas revenues. According to forecasts of the Ministry of Finance, in June the budget will receive less than 44 billion rubles. such income.