Russian Deputy Prime Minister Alexander Novak said on Thursday that Russian oil production may decline by 4% to 5% in April from March due to problems with insurance and usage of vessels, news agencies reported.

Reports of lower production come as Russian exporters experience difficulties in the face of Western sanctions over Moscow’s military operation in Ukraine.

Russian oil production is already down by around 4% in early April, continuing to slide following a fall in March.

Russia’s production of oil and gas condensate fell to 10.52 million barrels per day (bpd) on April 1-6 from a March average of 11.01 million bpd, two sources familiar with the data told Reuters earlier on Thursday.

They said output stood at 10.44 million bpd on April 6 as Russia had some difficulties exporting following Western sanctions over Ukraine.

Novak also said that the Russian government was looking at the possibility of switching to payment in yuan for energy exports to China. He added that some deals have already being settled in yuan and that Russian central bank and finance ministry were working on this.

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