Russian news agencies reported, quoting Russian Deputy Prime Minister Alexander Novak, as saying on Tuesday that Russia’s mechanism to ban oil sales subject to a price cap imposed by Western countries should be activated by end of year.
“We are preparing our decision,” Novak told reporters, quoted by RIA news agency. He added that when asked if the mechanism would be activated by the end of the year, he replied: “Yes. I’m sure of it.”
Earlier in the day Novak said so Your country may slightly reduce oil production.
He added that Russia was making changes to its supply chains in response to Western countries capping Russian oil prices to $60 a barrel, aiming to reduce Moscow’s ability to finance its war in Ukraine.
The G7 nations, Australia and the 27-nation European Union began this week capping the price of seaborne Russian crude to $60 a barrel, the latest Western measure to punish Moscow for its invasion of Ukraine .
The agreement allows the shipment of Russian oil to other countries using tankers from G7 countries, European Union member states, insurance companies and credit institutions, if the shipment is purchased at the specified ceiling for the price of a barrel or less.
