Report: Novak says Russia to ban oil supplies under price cap terms

MOSCOW, Dec 23 (PRIME) -- Russia plans to prohibit the supply of oil and oil products to the countries and legal entities that will require compliance with the price cap in contracts, and is ready to reduce production in this regard, Russian Deputy Prime Minister Alexander Novak told Rossiya 24 TV channel on Friday.

He added that the ban will be introduced by a presidential decree that is being prepared to retaliate against the price cap introduction.

Russia is ready to go for a partial production cut, the reduction may be about 500,000–700,000 barrels per day or about 5–7% at the beginning of 2023.

Novak said that gas production in Russia will drop by 18–20% to 671 billion cubic meters in 2022. Oil production will increase by 2% to 535 million tonnes and oil products output will increase by 5%, he added.

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