Oil production drops due to sanctions

Over the 26 days of April, Russia’s oil production has gone down almost 9% month-on-month, Kommersant reports.

Maxim Bogodvid / RIA Novosti

Lower production is primarily due to European traders’ refusal to buy oil from Russian state companies after May 15. In addition to that, there is a general trend for decline in oil refining domestically.

Sergei Khestanov, economist and Associated Professor of the Russian Academy of National Economy and Public Administration (RANEPA) believes that the 9-percent decrease is not significant, with drastic effects to start showing if the oil production drops more than 30%.

“Remember that the drama of the dissolution of the Soviet Union was not only manifested in dropping oil prices but also in dropping production. Between 1987 and the early 2000s, the oil production fell around 50%, or almost by half.”

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