Russia could cut oil production by 500-700,000 barrels a day in early 2023, in response to the EU, G7 and Australia introducing a price cap on Russian black gold, a report said. said Friday (December 23) Russian Deputy Prime Minister Alexander Novak.
“At the beginning of next year, we could make a reduction (in production) of 500-700,000 barrels per day, for us it’s around 5-7%”said Mr. Novak, in charge of Energy, quoted by the official news agency TASS.
At the beginning of December, the 27 countries of the European Union, the G7 and Australia had agreed on a maximum price of 60 US dollars for crude oil of Russian origin transported by sea, in order to limit the income from Moscow to finance its military offensive in Ukraine.
Thus, only oil sold by Moscow at a price equal to or less than 60 dollars can continue to be delivered. Beyond this ceiling, it will be prohibited for companies to provide services allowing maritime transport (freight, insurance, etc.).
The stated objective of this new Western sanction is to dry up part of the colossal income that Moscow derives from the sale of its hydrocarbons and thus reduce its ability to finance its military intervention in Ukraine.
A few days after the introduction of the Russian crude price cap, President Vladimir Putin threatened the West with “reduce production” Russian oil ” if necessary “denouncing a “stupid decision”.