A forecast of oil production in Russia in 2022

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Sputnik radio station on the forecast for a decline in oil production in 2022.

According to the results of the current year, oil production in Russia may reach 480-500 million tons against 524 million tons last year, Russian Deputy Prime Minister Alexander Novak said.

Alexey Gromov explained, what factors influence the prospects for Russian oil production.

"Obviously, this year, oil production in the Russian Federation will decrease, the key reasons for the decline are the sanctions pressure that the Russian oil complex is subjected to, and the problems that have already arisen and, most likely, will increase with the export of Russian oil and oil products. In the future, it is expected in one form or another, the adoption of an oil embargo by the EU countries, and of course these moments are reflected in the prospects for Russian oil production," he said.

In terms of income, the decline in exports can be offset by rising prices for oil and petroleum products, the expert added.

"The income of Russian oil exports at the end of the year will in any case be significant, because oil prices are higher than observed in 2020-2021. It is premature to give a specific assessment, because we cannot yet predict what the level of oil prices will be in the second half a year. If the embargo from the EU takes place, oil prices will obviously rise. Then the level of oil and gas revenues may rise," Alexey Gromov concluded.