Novak: Russia better to reduce oil production

Russian Deputy Prime Minister Alexander Novak said today, Friday, that it is better for Russia to reduce its oil production than to agree to a price cap imposed by western countries.

During an interview with Russian state TV, Novak also mentioned that the European Union’s ban on Russian oil products may lead to higher prices for oil products in Europe.

The European Union, G7 countries and Australia imposed a maximum price of Russian oil of $60 a barrel, which came into force on December 5. This came in addition to the ban imposed by the European Union on imports of Russian crude oil transported by sea, and pledges from the United States, Canada, Japan and Britain to take similar action.

Russian President Vladimir Putin said on Thursday that he would issue a decree within the next week detailing Moscow’s response to the price cap.

Novak said that the decree would ban sales of oil and petroleum products to countries that join the price ceiling and companies that demand its application.