Russia warns that it could reduce oil extraction by 5-6% in 2023

By: MRT Desk

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Russia warns that it could reduce oil extraction by 5-6% in 2023

Russia warned today that it could reduce the extraction of petroleum between 5 and 6 percent at the beginning of 2023 due to the cap price of $ 60 per barrel imposed on its crude by the European Union, the G7 and Australia as a sanction for the Russian “military campaign” in Ukraine.

“We are willing to partially reduce extractions. At the beginning of next year our reduction may be between 500,000 and 700,000 barrels a day,” Russian Deputy Prime Minister Alexander Novak said in an interview with state broadcaster Rossia 24.

He explained that this represents a decrease of between 5 and 6 percent of daily production.

“It is not a significant volume, but there is this risk,” said Novak, who reiterated that Russia will not supply oil and crude oil products to companies of countries that require contracts to conform to the price cap.

This Thursday the Russian president, Vladimir Putin, announced that “on Monday or Tuesday” of next week he will issue a decree with measures in response to the imposition of a maximum price on Russian crude.

“We don’t lose anything because of the cap,” the Kremlin chief told reporters, warning that for the world economy the measure could have disastrous consequences and cause a drastic rise in oil prices.

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