Bloomberg: Russia Oil Production Nears Record With Sanctions Yet to Bite

Russian oil output rose close to a post-Soviet era record last month, a sign the biggest source of revenue for President Vladimir Putin’s government has yet to be eroded by U.S. and European sanctions.

The nation increased output 0.7 percent to 10.61 million barrels a day, according to preliminary data from CDU-TEK, which is part of the Energy Ministry. The figure is within 0.3 percent of the post-Soviet high record in January and is for crude and condensates, a type of oil that yields a greater proportion of high-value fuels.

The U.S. and the European Union have targeted Russia’s oil industry by banning exports of some equipment and technology, blaming Putin’s government for stoking a separatist insurgency in eastern Ukraine. Russia denies involvement. Production in the oil and gas sector hasn’t been affected by tighter sanctions yet, according to Ildar Davletshin, an oil and gas analyst at Renaissance Capital in Moscow.
MORE