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Russian oil will find buyers — Novak

Russia is changing oil supply chains amid the EU embargo and the price cap, but does not see this as a tragedy, the Deputy Prime Minister said

MOSCOW, December 6. /TASS/. Russian oil, despite the embargo and the price cap, will be in demand, although the measures will affect Russian companies, Deputy Prime Minister Alexander Novak told reporters.

"Such interference in market instruments, of course, affects the work of our companies, the sale of products to export markets. Nevertheless, I want to emphasize that Russian oil is in demand on world markets and will find buyers," he said.

Novak noted that Russia is the largest supplier of oil to the world energy markets. "Taking into account the growth in demand for global energy consumption, we see that the growth of the world's economies must have resources. There is not much oil in the world, and Russian oil has always been and will be in demand," the Deputy Prime Minister said.

Russia is changing oil supply chains amid the EU embargo and the price cap, but does not see this as a tragedy, Novak said. "Yes, mechanisms and supply chains will change. Nevertheless, we do not see this as a tragedy, companies will find interaction mechanisms among themselves to sell relevant products," Novak said.

Russia will keep its oil sales abroad in December at the level of November against the backdrop of the EU embargo and the price cap, Novak added. "We are confident that in December our sales on the global market will be at the level of November. Then we will see how the products will be sold, how the situation will develop on the market. There are many uncertainties here, including those related to the needs of the global economy," he told reporters.

Earlier, on Tuesday, Novak said that Russia in January-November 2022 increased oil production by 2.2%, to 488 mln metric tons.

On December 5, an embargo on the delivery of Russian oil by sea to EU members went into effect, as did a resolution by the EU, the G7, and Australia to set an adjustable price cap for Russian oil supplied by sea at $60 per barrel. According to Novak, Russia intends to develop a mechanism that will prohibit trading based on the rubles of the oil price cap.

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