Covid-2019 and Saudi Arabia – Russia disagreement on oil production

Saudi Arabia may refuse to cooperate with the Russian Federation in terms of coordinating oil production volumes due to Covid-2019, which demonstrates how a virus might impact not only the national security but also the economy and the international trade market with serious repercussions in the case of Russia because the country strongly depends on energy export.

According to sources, Saudi Arabia is concerned that the spread of the coronavirus will have a negative impact on global oil demand, while the Russian side believes that there is no reason to reduce production because the effects of the coronavirus on oil demand in China will be temporary. In addition, Moscow believes that the reduction in supplies from Lybia and Venezuela will compensate for and balance the weakening demand for oil in China.

Because of the coronavirus, Saudi Arabia, with Kuwait and the United Arab Emirates (UAE), which account for more than half of the total production of OPEC countries, are holding talks on the possibility of reducing total oil production by an additional 300 thousand barrels per day.

Why does it matter?

Because the Russian Federation is heavily dependent on oil and gas exportation (in 2019, the energy revenue contributed approximately 7.9 trillion Russian rubles to the federal budget.), and the reduction in production and export might affect the country, which has been facing economic and financial problems due to the lack of diversification and Western sanctions.  Moreover, a disagreement in terms of oil production might affect Saudi – Russian relations, which the Kremlin has tried to restore and improve according to its strategy in the Arab-Muslim world.

Author: Silvia Boltuc

Written by

  • Silvia Boltuc

    SpecialEurasia Co-Founder & Managing Director. She is an international affairs specialist, business consultant, and political analyst who has supported private and public institutions in decision-making by providing reports, risk assessments, and consultancy. Because of her work and reporting activities, she has travelled in Europe, the Middle East, South-East Asia, and the post-Soviet space assessing domestic dynamics and situations and creating a network of local contacts. She is also the Director of the Energy & Engineering Department of CeSEM – Centro Studi Eurasia Mediterraneo and the Project Manager of Persian Files. Previously, she worked as an Associate Director at ASRIE Analytica. She was the co-author of the books Conflitto in Ucraina: rischio geopolitico, propaganda jihadista e minaccia per l’Europa (Enigma Edizioni 2022) and Geopolitica dell’Asia centrale (SpecialEurasia 2025), while she contributed with dedicated chapters to the books Il Nuovo Ordine Globale. I protagonisti del multilateralismo nelle aree continentali. Le principali istituzioni di riferimento in Africa, Americhe, Artico, Asia, Europa (Armando Editore 2024) and Asia Centrale. La riscoperta dell’Heartland. Le opportunità per l’Italia e l’Unione Europea (Armando Editore 2025). She speaks Italian, English, German, Russian and Arabic.

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