Russian President Putin threatens to cut oil production in response to price cap

Russian President Vladimir Putin has threatened to stop oil sale to the countries agreeing to the West-led decision to impose a price cap, adding that it will reduce oil production.

The remarks came in response to the move of the Group of Seven, European Union and Australia to impose a price limit on Russian oil of $60 per barrel in a bid to weaken Kremlin’s ability to finance its war in Ukraine. The move came into effect on Monday.

“I have already said that we simply will not sell to those countries that make such decisions,” Putin said on Friday after a regional summit in Kyrgyzstan’s capital, Bishkek.

Russian President Putin attends Eurasian Economic Council, talks to focus on energy and trade

“We will consider a possible reduction in production if necessary,” he added, calling the price cap a “stupid decision” that is “harmful to global energy markets”.

The Russian leader added that Moscow will announce retaliatory steps “in the next few days”, but he did not elaborate further.

Currently, the market price of a barrel of Russian Urals crude is hovering around $65 dollars, just slightly above the cap agreed.

Putin hints at ending war in Ukraine

After the summit, Putin also talked about the possibility of ending the war in Ukraine, adding that Russia is looking for a settlement with its neighbour.

“The settlement process as a whole, yes, it will probably be difficult and will take some time. But one way or another, all participants in this process will have to agree with the realities that are taking shape on the ground,” he said.

Putin’s statement came just days after the 70-year-old hinted at a protracted war in Ukraine, saying that his military operation could be a “long-term process”. 

He further said that his military operation was going as per the plan.

“Everything is stable. There are no questions or problems there,” he said.

(With inputs from agencies)

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