Russia is making a mechanism to respond to the oil price cap this month

Russian news agencies reported, quoting Russian Deputy Prime Minister Alexander Novak, as saying on Tuesday that Russia’s mechanism to ban oil sales subject to a price cap imposed by Western countries should be activated by end of year.

“We are preparing our decision,” Novak told reporters, quoted by RIA news agency. He added that when asked if the mechanism would be activated by the end of the year, he replied: “Yes. I’m sure of it.”

Earlier in the day, Novak said his country may reduce oil production slightly.

He added that Russia is making changes to its supply chains in response to Western countries capping Russian oil prices to $60 a barrel, aiming to reduce Moscow’s ability to finance its war in Ukraine.

The G7, Australia and the 27 countries of the European Union began this week to cap the price of transported Russian crude via sea ​​at $60 a barrel, the latest Western measure to punish Moscow for its invasion of Ukraine.

The agreement allows the shipment of Russian oil to other countries using tankers from G7 countries, European Union member states, insurance companies and credit institutions, if the shipment is purchased at the specified ceiling for the price of a barrel or less.

Read More About: Business News