Russian companies have struggled to secure funding for April contracts to sell crude and petroleum products, but the situation can be resolved, Russian Deputy Prime Minister Alexander Novak was quoted as saying by Interfax news agency.
The United States has banned oil and gas imports from Moscow on Tuesday, and some Western oil companies, including Shell, have said they will stop buying Russian gas.
Western sanctions have not yet had an impact on Russian oil production, with the latest figures showing that production rose by 55,000 barrels a day to 11.1 million barrels a day in March from February, according to the Kommersant newspaper, which cites figures from the Russian Ministry of Energy.
Novak said Russia was working with oil companies and buyers to find other payment methods without the need for letters of credit.
“We find other ways, for example, with Chinese companies – it is not a widely used method, it is an isolated case,” Novak was quoted as saying.
Production by Russia’s largest company Rosneft was 3.4 million barrels per day, excluding Bashneft, Lukoil production was 1.6 million barrels per day, Surgutneftegaz 1.2 million barrels per day and Gazprom Oil was 0.8 million barrels per day, according to data released by Kommersant.
While total production has risen, with Gazprom Neft accounting for four-fifths of the increase, some Russian manufacturing companies are having trouble selling their shipments, according to Kommersant.
Analysts at Rystad Energy in Oslo said earlier this week that Russia may have to start cutting its crude production if the embargo escalates, as it was forced to do in April 2020, when global demand collapsed due to of the COVID-19 pandemic.
Source: Capital
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