The Ministry of Finance predicted a temporary decline in oil production in Russia

MOSCOW, 12 Oct — PRIME. The Ministry of Finance expects a temporary decrease in oil production in the Russian Federation due to an embargo on its purchase in Europe, in 2023 this decrease may be about 5%, it is premature to talk about expanding the practice of AIT in such conditions, since a decrease in the budget revenue base cannot be allowed, said the Deputy Minister Finance of Russia Alexei Sazanov, speaking at the Russian Energy Week.

“Now, speaking from the point of view of the balance between the industry and budget revenues, it is clear that now, in the context of the expected embargo, there are some problems with logistics that are being solved, but at the moment there will still be a certain decrease in production. It already takes place and will probably , in small volumes – 5% next year. Under these conditions, it is premature to talk about expanding the practice of AIT,” he said.

“In no case, especially in today’s conditions, can we allow a decrease in the revenue base that is now available at traditional fields, because now the budget is in dire need of income, so we cannot allow any loss of income,” he explained. deputy minister.

At the same time, he noted that if there is a demand for oil, the Ministry of Finance is ready to take into account the needs of the extractive industry in its decisions. “If the industry sees markets for its products, if they see that the oil that will be produced in new areas, or new production – in depleted areas, if there is a demand for it, of course, we will be ready to meet the needs of the industry and expand the practice of AIT,” Sazanov said.

“Everything will be determined by market conditions, the possibility of distribution, sales of our oil,” the official stressed.

Russian Energy Week takes place in Moscow from 12 to 14 October. RIA Novosti acts as an information partner of the forum.