Novak: Russia will respond to the price ceiling with a ban on oil supplies
[ad_1]
Deputy Prime Minister Alexander Novak said that Russia will ban the supply of oil and petroleum products to countries that will require compliance with the price ceiling, as a response to the decision of Western states to impose restrictions on energy supplies.
“As part of this decree, there is a ban on the supply of oil and oil products to those countries and those legal entities that will demand compliance in contracts with the price ceiling introduced by the European Union,” Mr. Novak said in an interview with Russia 24 TV channel (quoted by RIA News”).
Mr. Novak also stressed that in connection with this decision, Russia is ready to reduce oil production, which at the beginning of 2023 could be 5-7%. He clarified that this volume is insignificant, but “such risks exist.”
“Therefore, we are ready to reduce partial production, at the beginning of next year we may have a reduction of somewhere by 500-700 thousand barrels per day. This is about 5-7% for us,” the Deputy Prime Minister added.
The price ceiling for Russian oil was introduced by the countries of the European Union (EU), G7 and Australia, it has been in effect since December 5. The limits were set at $60 per barrel. Yesterday, December 22, President Vladimir Putin curledwhich will sign a decree on retaliatory measures to the oil price ceiling on Monday-Tuesday.
According to Kommersant’s information, against the backdrop of the EU embargo and the oil price ceiling, Russian oil exports via pipelines and the sea in two and a half weeks of December decreased by 11% compared to the previous month, to about 560 thousand tons per day. However, during a transitional period of 45 days, oil shipments can be carried out without applying the ceiling on transactions concluded before December 5, so the final effect of the introduction of restrictions is not yet noticeable.
More details – in the material “Kommersant” “Oil gets stuck in pipes”.
[ad_2]
Source link
