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Russian Energy Minister Alexander Novak said on Wednesday that Saudi Arabia's entry into East European oil markets, traditionally dominated by Russia, was the "toughest competition," Reuters reported.
"Every country has the right to sell where it thinks necessary. This is a competition, the toughest competition is going on now," Novak told reporters, according to Reuters.
Saudi Arabia has started supplying oil to Poland, the head of Russia's biggest oil company, Rosneft, said on Tuesday, becoming another Middle Eastern producer to enter a market traditionally supplied mostly by Russia, the report reads.
Saudi Arabian oil appeared in the EU market amid growing controversy between Moscow and Riyadh over the Syrian crisis, as Russia has been accused of targeting the U.S. and Saudi-backed rebels in Syria. Recently, Russian President Vladimir Putin has discussed the Syrian issue with Mohammad bin Salman Al Saud, the son of the Saudi King and the leading figure in the development of security policy in the region.
Read alsoSaudi Arabia continues reducing prices of crude oilNovak confirmed that Russia will participate in the meeting of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil producers, which is scheduled for October 21.
Eight non-OPEC nations (Russia, Azerbaijan, Kazakhstan, Brazil, Colombia, Mexico, Norway and Oman) were invited to a technical meeting of the organization on October 21 in Vienna.
At the technical meeting, Venezuela is expected to propose a new strategy for increasing prices, which provides for a phased reduction of production to maintain prices at or above $70 per barrel. Kuwait's oil minister reiterated that OPEC would discuss this strategy.
The authorities of Russia, which federal budget is reliant on commodities revenues, are trying to find ways to close the budget gap resulting from a two-fold drop in oil prices and anti-Russian sanctions. The Russian Urals blend is however losing its position in the EU oil market due to cheaper supplies from the Middle East, and this pressure is continuously growing, the report notes.