Novak described the consequences of lifting sanctions on Iran and Venezuela

According to Novak, Venezuelan oil will also be needed to balance the market, and Iranian oil,and Russian oil Alexander Novak

Iran and Venezuela can bring to the market up to 2.5 million barrels. oil per day if sanctions are lifted , however, the growing demand for oil will require additional volumes of raw materials from different producing countries, including Russia, Deputy Prime Minister Alexander Novak said in an interview with Russia 24 TV channel.

He noted that Russia has always opposed sanctions against Iranian and Venezuelan oil and considers them illegal.

“Therefore, in the [OPEC+] balance sheet, we certainly take into account the possibility, if restrictions are lifted, of an increase in supply in the market from these countries. Additionally, we believe that this could be approximately 2-2.5 million barrels per day. per day,” the Deputy Prime Minister said (quote from Interfax).

He noted that it will take time for these volumes to enter the market, since “as a result of sanctions, it is still necessary to make up for production, to make significant investments in this industry, and the investment cycle, as you know, is quite a long time.”

Novak allowed a 10% decrease in oil refining in 2022 The Economy

Another nuance, Novak continued, is that demand will continue to grow, and the recovery that has occurred is only a recovery of the pre-pandemic level until 2020. “We expect that in the coming years, demand will increase by another 5%, by 5 million barrels. per day. And there is no free capacity in such volume in the world market. Therefore, it is very important to maintain the investment attractiveness of the entire oil industry in Russia and in other countries. Unfortunately, today statistics show that so far investment activity has not recovered,” he added.

According to the Deputy Prime Minister, in 2019, $480 billion of investments were spent on traditional production, and $350 billion in 2021, that is, “the decline was partially restored, not in full, a third is still not invested.” “Therefore, Venezuelan oil, Iranian oil, and Russian oil will be needed. And the potential volumes that Saudi Arabia can supply, growth in the United States , in other countries that are not members of OPEC +, [are needed] in order to meet growing demand, and so that we can balance the market, ”said Novak.

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In March, sources for The New York Times reported that the United States was considering sanctioned Venezuela as a potential replacement for Russia amid sanctions against its energy sector. According to the publication, American officials tried to persuade the leadership of the Latin American country to distance themselves from Russia against the backdrop of events in Ukraine, but the negotiations did not lead to results. The Venezuelan Foreign Ministry said that for cooperation, the United States must recognize the legitimate authority of President Nicolas Maduro. Washington emphasizes that it still considers Juan Guaido the legitimate leader, but is ready for dialogue if Caracas concludes a certain set of agreements with the opposition.

However, the US has already allowed Italy's Eni SpA and Spain's Repsol SA to ship Venezuelan oil to Europe in July, Reuters reported. In addition, Washington lifted sanctions that prevented the work of American and European oil companies in Venezuela.

Discussions on lifting US sanctions on another country, Iran, have been underway since last year. It has been under a full US oil embargo since April 2019.

See also Novak believes that the decision of OPEC + to increase quotas will balance the oil market 01:03