Russian oil and gas production to drop in 2023 - energy minister

Russian oil and gas production is expected to decline in 2023, Energy Minister Nikolai Shulginov said on Wednesday, as Moscow comes under pressure from Western restrictions and a lack of European buyers. Russia has drastically reduced its energy exports since sending troops into Ukraine just over a year ago, in part due to Western sanctions and a Western price cap on Russian oil.

Russian oil and gas production is expected to decline in 2023, Energy Minister Nikolai Shulginov said on Wednesday, as Moscow comes under pressure from Western restrictions and a lack of European buyers.

Russia has drastically reduced its energy exports since sending troops into Ukraine just over a year ago, in part due to Western sanctions and a Western price cap on Russian oil. While it has managed to divert some of its oil to major buyers such as India and China, Moscow said in February it would cut output by 500,000 barrels per day in response to the price cap.

"In 2023 for oil, we expect the level to be slightly lower, partly due to the voluntary production cut," Shulginov said in a speech to parliament, the State Duma, according to the TASS news agency. "The level of gas production will continue to decrease, both due to the withdrawal of the European market and the reorientation of energy flows." (Writing by Caleb Davis; editing by Guy Faulconbridge and Kevin Liffey)