Russia’s decision to enter into negotiations with the countries of OPEC to limit oil production brought her this year about 400 billion rubles ($6 billion), says the Agency Bloomberg with reference to anonymous sources familiar with unpublished calculations of the Russian government.
About 40% of the revenues of the Russian budget is formed from oil and gas. The flow of petrodollars maximally decreased after the collapse of the oil to a 12-year low in January. The second year of the recession and the highest for six years the budget deficit has forced the government to spend money from the reserve funds and to sell state assets.
However, the talks about readiness of Russia to cooperate with OPEC in the area of freezing of oil production has led to growth of quotations in the market from 27 January to $ 44 per year on average. This growth, combined with the growth of the Russian economy, led to the growth of state revenues by 400 billion to 700 billion, the sources told the Agency.
In January-October Russia received 2.7 trillion rubles at the expense of export duties and oil production tax (this is 26% of budget revenues over 10 months of the current year).
Thus, as noted by the Agency, from Russia, the world’s largest energy exporter, remains an incentive to continue our cooperation with other major manufacturers even after the failure of negotiations on the freezing of production in April.
At the end of September at the talks in Algeria of the OPEC countries for the first time since 2008, agreed to reduce oil production (the previous attempt to agree in April ended in failure). The members of the cartel agreed to reduce the total production of 33.24 million to 32.5-33 million barrels per day. The volume of production for each country cartel plans to install at the next meeting, which will be held on November 30.
Russia says it is ready to restrict the supply if OPEC members in late November to agree on production cuts, however, would prefer to freeze production at the current level, not reduce it.
The main stumbling block for reaching an agreement on quota levels remains the reluctance of Iraq and Iran to participate in production cuts. In addition, Baghdad and Tehran continue to disagree with the assessments that should be used as a starting point for the calculation of future quotas.