According to a report in the Wall Street Journal, Russia’s natural gas production will fall 12 percent this year and its exports will fall by about a quarter, a sign that the deliberate pressure on the country from oil sanctions is hurting.
Russian Deputy Prime Minister Alexander Novak told the state-run TASS news agency that the drop in gas production compared to last year was largely due to the closure of export infrastructure.
Most of Russia’s natural gas exports have been through pipelines, mainly to Europe.
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Russia’s energy exports have come under increasing pressure from international sanctions and European efforts to limit purchases of Russian oil and gas, all in an effort to empty the Kremlin’s war chest in its attacks on Ukraine.
Separately, Novak said on Friday that Russia could cut oil output by 500,000 to 700,000 barrels per day in response to Western price curbs imposed earlier this month – a reduction he said of 5 It is up to 7% of capacity. Early next year
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The European Union and the United Kingdom have also banned the sea transportation of Russian crude oil.
Russian officials have downplayed the impact of price caps and other sanctions on Russia’s oil and gas sector, which is the lifeblood of the country’s economy.
Since Putin invaded Ukraine in February, Russian authorities have stopped releasing data on trade statistics, including oil and gas production, to protect the economy and domestic companies from further sanctions.
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Without those numbers, independent verification of Moscow’s claims that it has been able to sanction its economy is complicated, the WSJ reported.