February 1, 2023

Russian Deputy Prime Minister Alexander Novak told reporters that Russia will keep December oil production at the level of November last year after the European Union imposed an embargo on Russian offshore oil supplies and imposed a price ceiling on Russian oil, according to a Russian news agency. TASS. Novak added: “We are confident that oil sales on the world market in December will be at the same levels as in November. Later, we will discuss how related products are sold, how the market situation is developing, and there are many uncertainties, especially with the demands of the global economy.”

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On the other hand, the decision of the European Union, the G7 countries and Australia to set a price ceiling for Russian oil delivered by sea at the level of $60 per barrel has come into force.

A cap imposed by the G7 on the price of Russian offshore oil went into effect on Monday as the West tried to limit Moscow’s ability to finance its war in Ukraine, but Russia said it would not honor the measure even if it was forced to cut production.

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This procedure allows the shipment of Russian oil to other countries using tankers of the “Big Seven” and the European Union, insurance companies and credit organizations only on condition that the shipment is purchased at the specified maximum price or lower, and if there are the main shipping and insurance companies of the world in the countries ” G7, it may be difficult for Moscow to sell its oil at a higher price.

With the cap price set at $60 per barrel, the EU and G7 countries expect Russia to continue selling oil at that price and settle for a lower rate of return.

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