Rosneft, one of Russia’s largest oil companies, plans to re-open June wells they shut in violation to Western sanctions. Four sources confirmed that the plan was made by Rosneft, with firms relying on a rebound in Asian purchasing and seasonal demand.

The impact of EU plans to cut Russian crude oil imports up to 90% per year by the end of this fiscal year was not yet clear.

The Interfax news agency reported that Russian oil production grew to 10.19 Million barrels per day (bpd), from 10.05,000,000 bpd during April.

However, this was almost 1,000,000 bpd lower than levels prior to the West’s sanctions against Moscow.

According to sources, Russian companies are planning to increase their output to meet domestic demand.

A source selling Russian oil overseas told Reuters that there had been concerns at first about how the sales process would go. But now, things have settled a little and the demand has increased for Russian barrels.”

Sources have reported that companies have reduced production in central Russia, while maintaining little change in output in the northern and Siberian areas further east. This is because cold weather can make it difficult to restart wells.

Rosneft units located in Samara’s Volga River region and Orenburg near the Kazakhstan border will be restarted starting June 1. Bashneft fields, which are situated between them were also mentioned by an industry source.

Rosneft is among the smaller firms that are increasing their production, according to a second source.

Rosneft was not contacted by Reuters for comment.

Alexander Novak, Deputy Prime Minister, stated this month that June would see an increase in oil production. However, he did not give any figures.

INCREASE IN SHORT-LIVED PERFORMANCE

Another source said that the summer market was expected to grow as Russians are more likely to visit their summer houses (dachas) and other vacation options due to sanctions.

He warned, however, that growth will be slow.

A modest rise in production will only last for a short time. “A modest rise in production is only temporary,” the executive explained.

According to the executive, companies aim for an average of 480m tonnes or 9.64 million barrels per day in oil production.

According to a fourth source, a Russian oil producer stated that oil from other countries would be diverted to Europe and create new market opportunities for Russian buyers.

According to the source, “They (Europeans), will pay 5-7 Euros for gasoline… and as they will have to take it somewhere else, we will ship our oil to wherever they will take it.”