Russian Deputy Prime Minister Oleksandr Novak said that oil production in Russia could be reduced by 500,000-700,000 barrels per day as early as 2023. 

This is reported by Bloomberg.

"We are ready to partially reduce production at the beginning of next year," the publication quotes his statement.

Novak added that the reduction in production will be approximately 5-6% of the current volume, i.e. 500-700 thousand barrels per day.

Such a step is being prepared in Russia due to the establishment of the upper limit of the price of Russian oil at the level of 60 US dollars per barrel, which is designed to limit the oil revenues of the aggressor state. 

In just one week from December 5, when the restriction came into effect along with the EU ban on Russian seaborne imports and restrictions on insurance, total volumes of oil shipments from the Russian Federation fell by 54%.

This situation leads to a slight increase in world oil prices.

In particular, on the morning of Friday, December 23, WTI oil for delivery in February rose by 1.1% to 78.31 dollars per barrel, and the price of Brent rose by 0.8% to 81.66 dollars per barrel.

As previously reported, the Council of the European Union adopted a decision to establish a ceiling price for oil exported from Russia. 

From December 5, 27 countries of the European Union, the United Kingdom, the United States, Canada, Japan and Australia will provide services related to Russian tanker oil only if it was purchased at or below the established limit price.

From February 5, 2023, the purchase of Russian oil products will also be prohibited.

We will remind you that Russia was outraged by the limitation of the price of its oil at the level of $60 per barrel.

Read also:

  • Energy disarmament of Russia: how the oil embargo will deprive the country of money for the war against Ukraine

  • What will the new price limit for Russian oil mean for global consumers: the opinion of experts

  • Putin's Oil Bottom: Will Price Caps Hit Russia's Revenue and War Funding Against Ukraine