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Russia may cut oil output by 5%-7% in early 2023 as it responds to price caps on its crude and oil products by halting sales to the countries which support them, the RIA news agency cited Deputy Prime Minister Alexander Novak as saying on Friday.

Another Russian news agency, TASS, cited Novak as saying the cuts could amount to 500,000-700,000 barrels per day.

The European Union, G7 nations and Australia introduced a $60 per barrel price cap on Russian oil, effective from Dec. 5, on top of the European Union’s embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain.

Russian oil exports fall by 11% for Dec 1-20

Russian President Vladimir Putin said this week he would issue a decree early next week detailing Moscow’s response to the price cap.

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