Russia understands and accepts Iranian demands to allow Tehran to fully regain its pre-sanctions oil output levels before joining any discussion about a global output freeze, Reuters reported.
Russia’s Energy Minister, Alexander Novak, said that Iran would consider joining a global deal to cap oil production only after it restores its output back to levels it enjoyed before international sanctions. Novak made the statement after talks in Tehran with his Iranian counterpart, on OPEC plans to put a cap on oil output in order to boost global oil prices, Associated Press reported.
Novak added that “major oil producers shall coordinate with each other. However, since Iran’s production decreased under sanctions, we totally understand Iran’s position to increase production and revive its share in the global markets.”
The Russian minister also said that while Iran generally supports the idea, it believes that it first needs to restore its oil production to 4mb/d, the level it had before it was targeted with international sanctions over its nuclear program. In February, Iranian Oil Minister, Bijan Zanganeh, clearly stated that Tehran would not restrain its oil output as it seeks to recapture the market share it had lost during years of economic sanctions. “They should leave us alone” until then, Zanganeh said, adding that “after that we will work with them,” Bloomberg reported citing Iranian sources. Iran’s output in February reached the level of 3mb/d.
< Recently, Saudi Arabia, Russia, Venezuela, and Qatar proposed an accord to freeze oil output and tackle a global surplus. Oil prices climbed by more than 40% since the 12-year low in January, as a result of countries' initial meeting on the subject matter on 16th February.