Russian Oil Production Rises in August, Sanctions Yet to Bite


MOSCOW, Sept 2 (Reuters) – Russia's oil output rose in August helped by an increase in condensate production at Gazprom, showing that energy supplies so far have not been affected by sanctions over the country's military invasion of Ukraine.

Oil production rose 1 percent to 10.52 million barrels per day (bpd) in August from July due to state-controlled Gazprom and projects with foreign companies, Russian Energy Ministry data showed.

Production in Russia, which includes crude oil and gas condensate, was still the world's highest in August. Its closest rival, Saudi Arabia, produced an average 9.75 million bpd last month, a Reuters survey showed.

Western nations have imposed sanctions on Moscow over its annexation of Crimea in March and its stance over the war in eastern Ukraine, warning of further measures if Russia does not help to stop the conflict escalating.

The measures include a ban on investments into new equity or debt with a maturity longer than 90 days for a number of Russia's largest companies, as well as on exports of equipment for new oil projects.

Sanctions have not yet hit oil production as the current measures are aimed at new projects which are years away from coming on stream. But as Western funding closes off or becomes too expensive, companies are already looking to cut investments.

Lukoil, Russia's second-largest oil producer whose output was flat month-on-month, last week said it plans to cut its investments by $2 billion next year.


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