Kremlin spokesman Dmitry Peskov attends a news conference of Russian President Vladimir Putin and his French counterpart Emmanuel Macron in St. Petersburg, Russia.
The Kremlin said on Tuesday that it regretted that dialogue between Russia and the United States was not working out despite what it said was a series of important strategic issues that needed to be discussed.
Russian President Vladimir Putin and U.S. President Donald Trump were due to have an extended meeting at a G20 Summit in Argentina at the weekend, but Trump cancelled after Russia seized three Ukrainian naval vessels and their crews.
"Dialogue is not working out despite certain plans and certain homework done by both sides," Kremlin spokesman Dmitry Peskov told reporters on a conference call.
OPEC and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia's resistance to a major cut was so far the main stumbling block.OPEC meets on Thursday in Vienna, followed by talks with allies such as Russia on Friday, amid a drop in crude prices caused by global economic weakness and fears of an oil glut due largely to a rise in U.S. production.The producer group's de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from U.S. President Donald Trump to help support the world economy with lower oil prices.Possibly complicating any OPEC decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many U.S. politicians to impose stiff sanctions on Riyadh.The sources, three from the Organization of the Petroleum Exporting Countries and one from a non-OPEC producer, said the meetings were taking place in a difficult environment and that Russia's position would be key in reaching a deal.Qatar to withdraw from OPEC as of Jan 2019: minister"Russia is playing tough," one of the OPEC sources said.Another OPEC source said: "The Saudis are working hard on the cut. But if Russia says no cut, then we (OPEC) won’t cut."Russian sources have indicated the country could contribute some 140,000 bpd to a reduction, but Middle East-dominated OPEC insists Moscow cut by 250,000-300,000 bpd.Two sources said talks were focusing on a pro-rata cut of 3-3.5 percent from October output levels, with no exemptions for any member.Sources also said OPEC could delay a decision to cut if the main criteria such as Russia's involvement were not met, even though doing so would mean a further fall in prices."OPEC can always meet again in February, for example, and decide on a cut then. Those who were not able or willing to cooperate will be wanting to cut then," one source said.Saudi Arabia previously insisted on a need to reduce production.It was unclear whether the apparent shift in position was caused by OPEC using negotiation tactics to bring Russia on board or by pressure from Trump to refrain from cutting output.In October 2018, OPEC pumped 32.916 million bpd, while its non-OPEC allies pumped 18.252 million bpd, according to the group’s internal data.The non-OPEC source said a deal could still be done this week, though details remained unclear: "The Saudis and Russians have an agreement to cut. They are just working on the final details on the volumes and mechanisms."Brent oil prices rose more than 2 percent on Tuesday, boosted by expectations OPEC would reduce output. 
OPEC works on deal to cut output, still needs Russia on board
Russian Energy Minister Alexander Novak said on Tuesday that the Iran-related sanctions, imposed by the United States against a ministry unit, were "baseless".Last month the United States has moved to disrupt an Iranian-Russian network that it said had sent millions of barrels of oil to Syria and hundreds of millions of dollars to indirectly fund militant groups Hamas and Hezbollah.Among various individuals and companies, it put under sanctions state-owned Russian company Promsyrioimport, a subsidiary of the Energy Ministry, which the U.S. Treasury alleges had facilitated shipments of Iranian oil to Syria. Russia launches first manned voyage to ISS since rocket accidentRussia's Putin says no hard figures on possible oil output cutsTurkish, Russian leaders meet in Argentina
Russia's Novak calls US sanctions against energy ministry unit 'baseless'
Russia has partially unlocked Ukrainian sea ports on the Azov Sea, Ukraine's infrastructure minister Volodymyr Omelyan said on Tuesday."Yes, Berdyansk and Mariupol ports are partially unlocked. Vessels make their way to the entrance and exit through the Kerch strait towards Ukrainian ports ... the movement is partially restored," the ministry quoted Omelyan as saying. Poroshenko submits bill to end friendship treaty with Russia to Ukrainian parliamentKremlin calls absurd accusation it has designs on Ukrainian sea ports
Kiev says Russia has 'partially unlocked' Ukrainian Azov Sea ports