Russia threatens to cut its oil production by up to 7% and raise prices

Russia has once again used oil in its confrontation with the West. specific, It threatened to cut its oil production by 500,000 to 700,000 barrels per day in 2023. Today, Deputy Prime Minister Alexander Novak announced that Western countries are introducing a price cap on their crude oil.

“Early next year, we can move forward Reduction of 500-700,000 barrels per day. “For us it is about 5-7%,” Novak, who is in charge of energy, said, according to the official TASS agency.

In early December, 27 countries from the European Union, the Group of Seven and Australia approved a proposal A maximum of $60 for Russian origin crude oil By the sea. Thus, only oil that Moscow sells at $60 or less can continue to be delivered to these countries. At a higher price, companies will be prohibited from providing services that allow their transportation such as freight or insurance.

The goal of this western scale is It hinders the huge income that Moscow receives from the sale of hydrocarbons And thus reduce its ability to finance military intervention in Ukraine.

A few days after this price cap was implemented, Russian President Vladimir Putin called it a “stupid decision” and threatened the West to “cut production” of oil “if necessary”.

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