Russia Production Unaffected So Far by Sanctions

By Stephen Levy

Despite ongoing sanctions against Russia’s energy industry by the U.S., E.U., and other western nations, Russia reported on March 2nd that its February production had not changed nationwide, according to Reuters.  Despite the broad stability, production did shift in the nation; Rosneft, the largest oil producer in the country, actually saw its production decline by 0.2% in February, due to aging fields and infrastructure. Smaller energy producers increased production to match, with exports of 4.27 million barrels a day in February, versus 4.34 million a day in January. This stability is relatively unsurprising; sanctions against Russia’s energy sector targeted new investment and fields, rather than existing production. However, the decline in oil prices may affect the economics of Russia’s energy sector, and lead to production declines in the future.

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