Russia, What’s With the Face?

by Roman Cheplyk
Wednesday, February 22, 2023
Russia, What’s With the Face?

Oil production falls in the Russian Federation  

Reuters, referring to information received from US assistant secretary of the treasury Ben Harris, says that financial problems in Russia are almost upon us. According to the US, the aggressor country has decided to cut oil production. Let us recall that oil is one of the Kremlin's main profit sources. That is why the anti-Russian sanctions affected oil as well. And as you can see, in less than half a year, Russia has already felt the consequences.

Russia reduced its production to 500.000 barrels a day because of a mechanism to limit the price of crude and recycled oil imports to European countries. This leads to the conclusion that Moscow can not sell all that it produces.

Ben Harris reports that the sanctions are being implemented. In America, no company buys fuel at a price higher than the "price ceiling" was set. Also, recall that recently Bangladesh did not allow a Russian ship into its waters.

"They cut production because they couldn't sell it, not because they want to turn oil and petroleum products into weapons," the politician told at the Argus oil conference.

Overall, the decline in Russian oil production has reached 5% since October. Revenues for the month (December 2022 — January 2023) decreased by 53%.

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