UPDATE: Novak says Russia to cut oil output by 500,000 bpd in March

(Rewrites story)

MOSCOW, Feb 10 (PRIME) -- Russia will voluntarily cut oil production by 500,000 barrels per day in March, which will help restore market relations, Deputy Prime Minister Alexander Novak told reporters on Friday.

“In March, Russia will voluntarily reduce production by 500,000 barrels per day. This will contribute to the restoration of market relations. In making further decisions, we will act based on the emerging market situation,” he said.

Olga Golant, a representative of Novak, said that the cut only applies to crude oil, when asked whether condensate will be included in the mentioned volume.

Novak also said that the risk of reduction in Russia’s oil production related to the price cap introduced by the E.U. and G7 states is still present. The government will assess it in the near future, he added.

“There are such risks. We will be evaluating them in the near future,” he said, when asked whether there are prerequisites for production reduction now.

Russia is now fully selling all of its oil, but will not sell it to those who directly or indirectly adhere to the price cap, Novak also said.

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