Russia Lowers Gas Production and Export Forecasts Amid EU Boycott

Russia's economy is facing further challenges as the country is expected to produce and export less natural gas than previously forecast, according to a draft government document seen by Reuters. The forecasts will be used to update the federal budget through 2029.

Natural gas production in Russia this year is now predicted to amount to 683.1 billion cubic meters, which is 5.3 billion cubic meters less than previously forecast. Russian exports of liquefied natural gas (LNG) by sea are expected to rise to 35 million tons this year, from 30.3 million tons in 2025, but that is still 5.3 million tons less than previously forecast.

The reduction in forecasts comes amid deteriorating economic and political relations with the West due to the war in Ukraine and the European Union's (EU) plans to completely halt purchases of Russian gas starting next year. The Kremlin has said that Europe is harming itself by buying expensive gas on the spot market instead of opting for cheaper Russian supplies.