MOSCOW, December 23. /TASS/. Russia will ban the supplies of oil and petroleum products to countries that will require compliance with the Western-imposed price ceiling, Deputy Prime Minister Alexander Novak said in an interview aired by the Rossiya-24 TV news channel on Friday, adding that Moscow might reduce oil production at the beginning of 2023 by 500,000-700,000 barrels per day.
"The decree [decree in response to Western-imposed price cap] suggests a ban on supplies of oil and petroleum products to countries and legal entities that will require compliance with the price ceiling imposed by the European Union. This is why we are ready for a partial cut in production. At the beginning of next year, the decrease is expected at around 500,000-700,000 barrels per day, which is around 5-7% for us," he explained.
The scale of such a cut in oil production is minor, Novak noted, adding though that "risks exist nevertheless."
On December 5, an embargo on maritime Russian oil shipments to the European Union came into force. Moreover, EU states also agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. A similar decision was announced by the G7 and Australia. The West is also banning its companies from providing transport, financial and insurance services to tankers carrying oil from Russia at a price above the agreed-on ceiling. Moreover, starting February 5, 2023 the price ceiling for petroleum products will be enforced, with their parameters to be set later.