Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented to the Vedomosti business magazine on the reasons for the oil production decline in Russia in the first five months of 2025.
Among other factors limiting oil production in Russia are the tight monetary policy of the Bank of Russia and the strengthening of the ruble against the dollar, Alexey Gromov says. He notes that due to high loan rates, Russian oil companies have minimized investments in drilling.
In turn, strengthening the ruble reduces the export earnings of oil companies, he adds."Loans for the oil and gas industry remain expensive. Companies have to focus on their own funds, and this always leads to a decrease in investment activity," the expert notes.
Gromov believes that Russia will be able to keep production at the level of last year. In his opinion, even a small increase in production is possible – by 1-2 million tons (+0.2–0.4%).
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