Russian oil companies will decide whether to reduce their oil output or exports in line with the country's planned cutback in oil exports in August, Russia's TASS news agency quoted Deputy Prime Minister Alexander Novak as saying on Thursday.
In July, Russia announced that it would reduce oil exports by 500,000 barrels per day (bpd) in August in order to ensure market stability.
Its decision came on the same day that Saudi Arabia and Algeria said they would cut output by 1 million bpd and 20,000 bpd respectively.
"Companies will independently decide how they will operate, either reducing exports or reducing production. But overall, the goal is to reduce supplies to world markets," Novak said.
"This solution will balance the market today in a period of low demand and, accordingly, this means that we will ship less, Russia will put less on world markets," he added.
Novak also said that Russia is maintaining its forecast of producing 515 million metric tons of oil in 2023 subject to decisions on its reduction.
"We did not change the target for 2023 -- 515 million metric tons. This is based already on decisions made, including in respect of production cuts," he said.
Novak said Russia is working on its production forecast for 2024 and it will be announced "as early as in the coming months."
Russia produced 535 million metric tons of oil in 2022, up 2% year-on-year, while the country's exports increased by 7% last year, despite European Union sanctions and price caps on its exports.
