It comes as Moscow feels the bite of Western sanctions aimed at crippling Russia’s ability to wage war in the neighboring country. The United States has banned all imports of Russian oil and the United Kingdom has pledged to end its dependence on Russia by the end of the year.
The EU is also considering an outright ban on Russian oil sources.
A document seen by Reuters shows Russian oil production could fall to between 433.8 million and 475.3 million tonnes this year, from 523 million tonnes in 2021.
This is the lowest production in almost twenty years and the most significant drop in production since the immediate post-Soviet era.
Production began to decline within days of the February 24 invasion, dropping 7.5% in about three weeks.
The EU is preparing a sixth round of sanctions which will likely include specific provisions against the Russian oil industry.
The EU depends on Russia for around 27% of its oil supply.
Valdis Dombrovskis, the commission’s executive vice-president, said the sanctions would include “some form” of oil measures.
He told The Times: “We are working on a sixth set of sanctions and one of the issues we are looking at is some form of oil embargo.
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German Economy Minister Robert Habeck said on Tuesday that the country hoped to find that solution within days.
He said an embargo “has become manageable for Germany” after reducing its reliance on Russian exports to a quarter of its total imported supply last month.
In an update, Mr Habeck said the figure was now 12% and all Russian imports were concentrated in one refinery.
Before the Russian invasion, Germany depended on Russia for about a third of its supplies.
The UK government announced on March 8 that the UK will “phase out” Russian imports by the end of 2022, as the UK works “closely with the US, EU and other countries”. other partners to end our dependence on Russian hydrocarbons”.
Prior to the move, Russian imports made up around 8% of UK supplies, with Prime Minister Boris Johnson saying the policy would be “another economic blow to Putin’s regime”.
The government said it was “confident” that the target could be achieved by the end of the year.