President Vladimir Putin, on Friday said Russia would keep the crude oil output terms, even as he stressed that Russia is not a member of the Organisation of Petroleum Exporting Countries (OPEC).
Russia hopes to achieve an average production of 11 million barrels of oil per day this year, about 1.8 percent higher than last year, same as, or near the post-Soviet record.
The cut in output by producers depends on non-member state cooperation and relies in large part on Russia to be effective at easing the supply-side strains that dragged oil prices to below $30 per barrel in early 2016.
In an interview with Russian broadcasters, President Putin promised to cooprar “We will further cooperate with OPEC, meaning that we will meet the obligations, but we are not a member-state of the cartel and we are independent while being in contact with them and meeting assumed obligations,” he assured.
Russia, a prominent non-member of the OPEC cartel offered to cut about 300,000 barrels of oil per day from output, more than half of the combined agreements from non-OPEC members.
Economists however are “very skeptical” about Russia’s participation in the deal, but said Putin’s personal investment in the cut could indicate a willingness to cooperate, even as his nation suffered from impacts of the low price of oil.
Putin in his press conference said real gross domestic product declined 3.7 percent, even as the nation’s economy was recovering.
“In November, national GDP inched up,” he said. “Overall for the year we are expecting a decrease in GDP in the range of 0.5 percent – 0.6 percent.”