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Russia might focus on crude price management, rather than production volume

Russia is expected to stabilize its annual crude production at ca. 560 mln tonnes in 2023-2024, Russian Energy Minister Nikolay Shulginov said in an interview to Kommersant daily. 

The priority of the industry should be “monetization of reserves”, rather than further production increase, he said.

That could mean that Russia plans to gradually reach 2019 level, when 568 mln tonnes was produced, but is cautious to overproduction and uncontrolled competition.

Currently, Russia is part of Opec+ agreement, aimed at managing crude price development by agreeing supply.

In 2020, in accordance with agreement Russia produced 512 mln tonnes, down 8,6% on the year.
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