Putin says Russia will not mothball oil wells despite West’s import ban

(Reuters) – Russian President Vladimir Putin stated on Thursday that Russian corporations is not going to block off their oil wells regardless of the West’s efforts to reduce its dependence on vitality provides from Moscow.

The USA launched its embargo on Russian imports in March simply days after Moscow despatched its troops into Ukraine, whereas the European Union agreed final month in precept to regularly lower 90% of its oil imports from Russia by the tip of this yr.

Putin stated the West won’t be able to fully cease utilizing Russian vitality assets over subsequent few years.

“So far as refusal from our vitality assets is anxious, that is unlikely for the subsequent few years, whereas it isn’t clear, what’s going to occur throughout these few years. That is why, nobody will pour cement into the wells,” Putin instructed a televised assembly with younger entrepreneurs.

Russian oil manufacturing fell by round 9% in April, however has been on a gradual rise since then regardless of the West’s sweeping sanctions towards Russia, as Moscow diverted its oil exports to Asia, notably to India and China.

Russia could also be getting extra income from its fossil fuels now than earlier than the beginning of what it calls its “particular army operation” in Ukraine, as world worth will increase offset the affect of Western efforts to limit its gross sales, U.S. vitality safety envoy Amos Hochstein stated earlier on Thursday.

Putin stated the sanctions had led to a lower of oil provide to world markets, whereas costs had been rising.

“The earnings of (Russian) corporations are rising in cash phrases. All people sees it, all people understands it,” he stated.

(Reporting by Reuters; Modifying by Andrew Heavens and Bernadette Baum)