Russia to prohibit oil sales to countries introducing price cap

By Elena Teslova

MOSCOW (AA) – Moscow will prohibit oil supplies to countries that will join the price cap on Russian oil, a government official said on Friday.

"This decree (on retaliatory measures announced by President Vladimir Putin) implies a ban on the supply of oil and oil products to those countries and those legal entities that will require compliance in contracts with the price ceiling introduced by the European Union," Deputy Prime Minister Alexander Novak said in an interview with state-owned television channel Rossiya 24.

If Russia has to use this ban, it will also have to reduce oil production by 5% to 7% or 500,000-700,000 barrels per day, Novak added.

The EU price cap on Russian oil in the amount of $60 per barrel came into force on Dec. 5, along with a ban on the supply of Russian oil to EU countries by sea. In addition to the EU countries, the Group of Seven countries and Australia also joined the restrictions.