Olivia Woods
Russia’s deputy prime minister, Alexander Novak, announced Friday that Russia plans to cut its daily production by 7% next year due to the U.S. and its allies placing a cap on oil prices.
According to Russia’s news outlet Tass, Alexander Novak stated that it was unacceptable for Russia to be dependent on the choices made by “unfriendly countries.”
“We are ready to go for a partial reduction in production,” said Novak in an interview with Tass.
“I assess the risks, when we are at the beginning of next year, we may have a reduction of somewhere between 500,000 to 700,000 barrels per day. This is about 5-7% for us,” he stated.
Novak also said that the reductions were “insignificant,” and that they might still cause a shortage of crude oil around the world.
“We’ll try to find some common ground with our counterparts to prevent such risks,” said Novak.
“But right now, we’d rather take a risk of a production cut than stick to the policy of selling in line with the threshold.”
Earlier this month, the European Union and the G7 countries (the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom) set a price cap for Russian oil at $60 per barrel.
To cut off of the Kremlin’s profits from energy exports and therefore its ability to finance its ongoing conflict in Ukraine, the EU has also restricted seaborne imports of Russian petroleum.
According to Bloomberg data, Russian oil exports dropped by 54% in the first full week after the US ban went into effect in early December.
Original source material for this article taken from here
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