Russia in strong position for price war
Oil producers in the country have relatively low upstream costs and greenfield projects ready to roll
Russian producers are ready for a war of attrition with Saudi Aramco, but some will handle the price collapse better than others. And having split with Opec+ in early March, Moscow is unlikely to change course anytime soon. Russia’s upstream costs average $4.70/bl oe, according to Moscow-based ratings agency ACRA. This is down from $5.60/bl oe last year, thanks primarily to depreciation of the rouble. At $25/bl, extraction and export taxes add a further $9/bl. But as tax breaks apply to many Russian fields, producers will continue to generate positive cash flow even if oil slides to $10/bl. Russia’s leading state firms Rosneft and Gazprom Neft are in a stronger position to weather the downtu
Also in this section
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
