- Russia's oil output could decline by as much as 17%, Reuters reported Wednesday.
- The Kremlin is facing its biggest slump in crude production since the early 1990s.
- The report comes as Western sanctions continue to pile up since Russia invaded Ukraine on February 24.
Russia is facing its biggest slump in oil production since the finals days of the Soviet Union, as Western sanctions continue to batter the economy.
The Kremlin sees output falling as much as 17% this year, according to a document from Russia's economy ministry seen by Reuters that estimated production at 433.8 million to 475.3 million tonnes, down from 524 million tonnes in 2021.
Russian oil production began to drop in March, and by mid-April was already down by 7.5%, according to Reuters.
If the full-year 2022 estimates come true, that would mark the lowest volume of output since 2003, when Russia pumped 421 million tonnes. It would also mark the worst crash in more than 30 years.
As communism was collapsing, Russia's oil production in 1991 fell 9.5% from 1990 levels and 17.7% from the 1988 peak.
The latest tumble comes as the US has banned imports of Russian oil after Vladimir Putin launched a war on Ukraine, which most global powers have condemned.
Other sanctions have targeted Russia's oil industry less directly, while the European Union inches toward its own full-scale embargo. Experts estimate Europe is facing an oil deficit of 2 million barrel per day if the EU decides to cut off the Kremlin competely.
The full repercussions of Western sanctions on Russia won't be fully felt until May, according to the International Energy Agency.
Meanwhile, the US is shipping double the amount to crude to ween Europe off of Russian supplies. And Putin is seeking closer ties with Asia to pivot to other oil markets, with Russia already selling its crude at record low prices to India.