Price Cap: Russia Threatens To Cut Oil Production 

Russia, on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia.

Oil prices rose Monday Dec. 5, 2022 as the first strong measures to limit Russia’s oil profits over the war in Ukraine took effect, bringing with them uncertainty about how much crude could be lost to the global economy through the new sanctions or Russian retaliation.

Russia may cut oil output by 5-7 percent in early 2023 due to price caps on its crude and oil products placed by the EU and G7, hindering sales to the countries that support them, Deputy Prime Minister Alexander Novak said.

President Vladimir Putin says Russia wants an end to the war in Ukraine which will inevitably lead to “some kind of negotiations”, a day after US President Joe Biden hosted Ukrainian leader Volodymyr Zelenskyy.

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Zelenskyy returns from US

Zelenskyy says he is back in his office in Kyiv after his visit to Washington to meet Biden and other US officials.

“I am in my office. We are working toward victory,” he said in the video posted to his Telegram channel.

During his visit, Biden promised to continue projecting a “united defence”. The US also announced $1.85bn in military aid, including the Patriot air defence system which is deemed to be one of the most advanced US air defence systems.

Russian gas remains cheap and in demand: Deputy PM

Novak says Russian gas is cheap and remains in demand and that a decision on a potential gas hub in Turkey will be taken in 2023.

“Gazprom is actively working with Turkish colleagues, others, on gas hub in Turkey,” he said.

“Gas hub in Turkey may provide tools for gas pricing mechanism,” Novak said.

He said it was too early to discuss the results of an ongoing investigation into the damage done to the Nord Stream gas pipelines in September.

Russia’s Novak says it’s better to cut oil production

Russian Deputy Prime Minister Novak says it is better for Russia to cut oil production than to agree to a price cap imposed by Western countries.

During an interview with Russian state television, Novak also said a European Union embargo on Russian oil products might lead to price rises for oil products in Europe.

Novak said earlier that Russia may cut oil output by 5-7 percent in early 2023 due to price caps on its crude and oil products to halt their sales

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