Fresh Oil Cuts Deal Carries Risks For Russia's Economic Growth - Kudrin

The new OPEC-non-OPEC oil cuts deal limits the development of private companies and carries risks for the economic growth of Russia, Russian Accounts Chamber Chairman Alexei Kudrin said.

MOSCOW (UrduPoint News / Sputnik - 08th December, 2018) : The new OPEC-non-OPEC oil cuts deal limits the development of private companies and carries risks for the economic growth of Russia, Russian Accounts Chamber Chairman Alexei Kudrin said.

"Reducing production within the OPEC-non-OPEC deal is a temporary solution and temporary stabilization of prices. I have not always been a supporter of participation in these agreements. This creates temporary income, but reduces motivation to increase productivity in extraction, sales and processing as well as reducing incentives in economic and fiscal policy," Kudrin told reporters.

He also stressed that Russia had prohibited private companies from increasing oil production, and this will cause a slowdown in Russia's economic growth.

Participants of the OPEC-non-OPEC oil production cut deal agreed during a meting in Vienna on Friday to reduce overall oil production by 1.2 million barrels per day. Under the new deal, OPEC and non-cartel nations agreed to cut oil production by 0.8 million barrels per day and 0.4 million barrels per day respectively from October 2018 levels. The deal will be valid from January 2019 for six months. Russia will reduce oil production by about 228,000 barrels per day from the level of October 2018 under the deal.