OPEC+ Considers Suspending Russia

Last updated: 2023-03-04 06:14

The OPEC+ members, the organization of oil exporting countries, are considering excluding Russia from the pact on the production.

The Wall Street Journal reported that the cartel is close to the decision.

The logic of the pact is as follows: in 2020, OPEC + members agreed on how much oil each produces. Then the price of oil dropped a lot, and quotas were invented to make it rise.

After launching war, Russia is forced to cut production due to sanctions. If it is excluded from the agreement, the Russian quota can be redistributed among other participants: they will produce more, and it will be a little easier for the EU to refuse Russian oil.

The Russia's suspension looks like possible solution, not the only scenario even though last week, the Saudi energy minister assured in the interview for the Financial Times that Russia would remain in OPEC+.

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