Russia may reduce oil output by 5%-7% in early 2023 in response to price ceilings on crude and oil products by banning sales to nations that support them, according to Deputy Prime Minister Alexander Novak, who spoke on state television on Friday.
Novak detailed for the first time Russia’s response to the West’s price limitations imposed in response to Moscow’s invasion of Ukraine, saying the cuts may amount to 500,000-700,000 barrels per day.
On top of the EU’s embargo on Russian crude imports by sea and equivalent pledges by the US, Canada, Japan, and Britain, the European Union, G7 nations, and Australia imposed a $60 per barrel price restriction on Russian oil on December 5.
Russian President Vladimir Putin said on Thursday that he would issue a decree outlining Moscow’s response to the price ceiling early next week.
The regulation, according to Novak, would prohibit the sale of oil and oil products to nations that join the price ceiling and enterprises who demand its observance.