Russia's biggest oil company has slashed its production levels as sanctions bite, report says

• Russia's biggest oil company, Rosneft, has taken the brunt of the hit from a slowdown in production.
• Bloomberg analysis showed that Rosneft's output has fallen by around 560,000 barrels per day since February.

Rosneft, Russia's biggest oil company, has slashed its output since the invasion of Ukraine began as Western buyers have shunned oil from the country.

Production at the company was 560,000 barrels a day lower in mid-May than in February, according to Bloomberg calculations based on Energy Ministry data.

Rosneft was producing around 3.8 million barrels a day in February, but that had fallen to 3.24 million by the middle of this month.

Overall, Russian oil output was 830,000 barrels a day lower over the period, meaning Rosneft accounted for around two-thirds of the fall in output.

The US and UK banned Russian oil imports after President Vladimir Putin invaded Ukraine in late February.

The European Union is currently trying to reach a deal on banning imports by the end of the year. But many companies on the continent have been shunning Russian energy in what analysts have called "self-sanctioning."

Major US oil company Exxon Mobil pulled out of Russia, including from the giant Sakhalin-1 project that included Rosneft. Production at Sakhalin-1 dropped by more than 145,000 barrels a day between February and mid-May, Bloomberg said.

However, there are signs that Russian producers are getting used to the restrictions, with Rosneft and other companies increasing production in May. Analysts have said India has been a key buyer of Russian oil, which is currently trading at a discount.

Despite sanctions and falls in oil production since the war began, Russia is still bringing in plenty of money through its energy sales, thanks to higher oil prices.

The country's current account surplus — the gap between the value of its exports and imports — rose to $96 billion in the first four months of the year, although this also reflected a sharp fall in imports.

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