PRESS: Lukoil says 30% decline in oil output not to hurt budget

MOSCOW, May 30 (PRIME) -- Russia could reduce oil production by 20–30% without hurting the budget, Leonid Fedun, deputy CEO for strategic development of oil producer Lukoil, told newswire RBC on Monday.

"Why should Russia ensure production of 10 million barrels of oil per day, when we can effectively consume and export 7–8 million without losses for the state budget, local consumption and imports," Fedun said.

He added that when a possible E.U. embargo on Russian oil pends, there is no point for Russia to produce and export more oil than needed for dynamic economic growth and the increase of wellbeing.

At the same time, Russia's reserves could be conserved for further consumption.

"What will be better, to sell 10 barrels of crude at U.S. $50 or seven at $80? This is what is happening. Shall we keep the pre-crisis export volumes, agreeing on 30% or even 40% discounts?" Fedun said.

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