The Russian Government is considering the implementation of quotas to stabilise oil exports amid surging wholesale prices.
Russian Deputy Prime Minister Alexander Novak told state media on 21 July that quotas are “being considered” along with other options.
“But there are other proposals too. We need to weigh the pros and cons,” Novak said, according to Russian news agency IRA. Novak added that proposals discussed in a meeting on 19 July will be announced soon.
Russian oil and gas revenue dropped by 47% between January and June of this year compared with the same period last year. Earlier this month, Novak announced voluntary production cuts of 500,000 barrels per day in August in a bid to raise oil prices.
Novak said on 21 July that some refiners had been forced to postpone planned maintenance until a later date in order to meet rising demand.
Russia’s oil industry is contending with a high budget shortfall amid the ongoing war against Ukraine. Several of Ukraine’s allies, including G7 member states, have introduced sanctions on Russian oil in a bid to limit the Russian Government’s ability to finance the ongoing war.
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Russian gasoline stock prices have reach record levels: average gasoline prices at the Saint-Petersburg International Mercantile Exchange rose on Wednesday by 1.8% to Rs62,653 ($694.5) per tonne, reaching a new all-time high, Reuters reports.
Following the introduction of sanctions following the invasion of Ukraine, other markets such as India and China have become regular importers of Russian crude. However, rising prices may soon see these countries return to traditional sources in the Middle East.
In May this year, Russian Finance Minister Anton Siluanov admitted that “there is a problem with energy revenues”.
Members of the Organisation of Petroleum Exporting Countries, along with Saudi Arabia, also introduced production cuts earlier this year in a bid to secure global oil prices.