Following a cap on oil prices adopted by Western nations, Moscow may reduce oil production by as much as 7% in early 2023, the deputy prime minister of Russia said on Friday.
According to Russian news outlets, Alexander Novak, who oversees Moscow’s energy policy, remarked, “At the start of next year, we could make a reduction of 500,000-700,000 barrels per day. For us, that’s around 5-7 percent,”
As part of sanctions on Moscow following its offensive in Ukraine, he claimed that Russia will not supply oil to nations that are implementing a price cap.
Early in December, the $60 per barrel price cap agreed upon by the European Union, G7, and Australia went into effect. Its goal is to limit Russia’s revenue while ensuring that Moscow continues to supply the global market.
The restriction, which was introduced concurrently with an EU embargo on seaborne exports of Russian crude oil, is intended to prevent Russia from evading the embargo by selling its oil to third parties at exorbitant prices.
The Ukraine attack won’t be affected by the cap, according to Russia, which also voiced confidence that new purchasers would be found.
