Russian mid-sized oil producer Russneft had to cut investments and suspend some projects at the beginning of the year due to the broader economic crisis and a decline in oil prices, Chief Executive Officer Yevgeny Tolochyok said.

The West introduced sweeping sanctions against Russia for the conflict in Ukraine, including price caps and embargo on purchases of sea-borne oil.

Tolochyok told an in-house newspaper that the situation on oil market was "difficult" in the beginning of the year, when the spread between the price of Russian flagship Urals oil blend and international benchmark Brent was rising "catastrophically".

"We had to significantly reduce the investment program, suspend promising projects and switch to the strictest austerity," he said, adding that the company has managed to successfully coped with the challenges.

He didn't provide any figures or named the suspended projects.

Russian oil producers have managed to redirect oil flows away from Europe, their traditional supply market, to Asia, mainly to India and China.

The price difference between Urals and Brent has also narrowed. (Reporting by Oksana Kobzeva and Vladimir Soldatkin; editing by Guy Faulconbridge)