Following a cap on oil prices adopted by Western nations, Moscow may reduce oil production by up to 7% in early 2023, the deputy prime minister of Russia said on Friday.
"At the beginning of the following year, we may reduce production by 500,000–700,000 barrels daily. That's about 5-7 percent for us," Alexander Novak, who oversees Moscow's energy strategy, reportedly told Russian news organizations. As part of the sanctions imposed on Moscow as a result of its offensive in Ukraine, he claimed that Russia would stop supplying oil to nations that were enforcing a price restriction. 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 international market.
The restriction, which was introduced concurrently with an EU embargo on seaborne exports of Russian crude oil, intends to prevent Russia from getting under the embargo by selling its oil to third parties at exorbitant prices. The Ukraine offensive won't be impacted by the cap, according to Russia, which also voiced confidence that it will find new clients.
AFP
Comments
Post a Comment