OPEC+ oil output cuts are non-political: Putin
Business
Says Moscow is shifting away its oil and gas trade away from Europe
MOSCOW (Reuters) – Russian President Vladimir Putin said on Friday that decisions made by the OPEC+ group to cut oil production were “depoliticised” and were not related to what Moscow calls its “special military operation” in Ukraine.
After Russia’s started what it calls a special military operation in Ukraine in February last year, Western nations have accused OPEC of manipulating oil prices and undermining the global economy through high energy costs. The West has also accused OPEC of siding with Russia.
“I have to tell you that all the decisions made within the framework of OPEC+ to reduce production are, above all, of a depoliticised nature,” Putin said in comments to the St Petersburg International Economic Forum.
“This is neither related to Russia’s special military operations, nor to some other considerations,” said Putin, adding that the current oil pricing environment was suitable for Russia.
OPEC+ has in place cuts of 3.66 million barrels per day (bpd), amounting to 3.6 per cent of global demand, including 2 million bpd agreed last year and voluntary cuts of 1.66 million bpd agreed in April.
Putin also said that Russia provides different discounts to its oil in various markets. The United States said Kremlin’s changes to the way it taxes oil sales were forced by Western sanctions on Russia over Ukraine and will hit its oil production capacity over time.
He said that traditional Russian sales markets are being replaced by other markets as Moscow is shifting away its oil and gas trade away from Europe.
