MOSCOW, February 10. /TASS/. The "price cap" mechanism for oil and oil products being introduced by Western countries may lead to a supply shortage and growing prices in several industries, Deputy Prime Minister Alexander Novak told reporters.

"In the future, it may not only lead to a decline in investments in the oil sector and, as a result, a future shortage of oil, but it may also affect other areas of the global economy with similar implications," he warned.

According to Novak, Russia considers that the "price cap" mechanism in the sale of Russian oil and oil products is an interference in market relations and a continuation of the West's damaging energy strategy.

"As part of the efforts to reduce the threat to the global oil market, Russia has prohibited the use of direct or indirect references to any unlawful limitations in oil supply contracts," the Deputy Prime Minister added.

He also said that Russia plans to cut oil production voluntarily by 500,000 barrels per day (bpd) in March. "Today, we are selling the entire volume of our oil output. But, as we have said before, we are not going to sell oil to those who directly or indirectly adhere to the ‘price cap’ principles," he said.

"In this regard, Russia will voluntarily cut production by 500,000 barrels per day in March. This will help restore market relations," Novak added. Novak's representative underlined that the production cut will only affect oil, excluding gas condensate.

On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force. G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on the supply of oil products from Russia entered into force. The price cap was set at $100 and $45 per barrel, depending on the category of oil products.