9 Dec 2022 17:08

Putin: No decisions yet to cut oil production, response to price cap to come in decree

BISHKEK. Dec 9 (Interfax) - There is no decision to reduce Russian oil production, this is speculation for now, and concrete steps in relation to the price cap will be spelled out in a decree to be issued in the coming days, Russian President Vladimir Putin told journalists.

The price cap on Russian oil corresponds to those prices at which Russia is currently trading oil, and Russia will not sell oil to those countries that support the price cap, Putin said. "I have already said that we are not going to sell to those countries that support this decision. We will think, maybe, if necessary, even of the possibility of reducing output. We have an OPEC+ agreement on a known level of production. We will think on an additional one, if needed. We're thinking on this point. There are no decisions yet," he said.

"Concrete steps will be set forth in a Russian presidential decree that will be issued in the coming few days," Putin said.

The proposed flow corresponds to those prices at which Russia is currently selling oil, Putin said. "In this sense, this decision doesn't affect us at all. Brent is slightly higher, Urals is slightly lower, and we're as yet giving discounts to many partners. We won't have losses under any circumstances. So don't worry about the budget," he said.

However, non-market regulation on the part of consumers destroys the sector, Putin said. "This concerns far from just us. This concerns all oil producers, because if someone agrees that the consumer sets the price, then this will lead to the collapse of the sector itself, inasmuch as the consumer will always insist on a lower price. The sector is already underfinanced. If we're going to listen only to the consumer, then investment will reduce to nothing. All this will lead at some stage to a catastrophic price surge. This is a stupid proposal, unread. It's not about us, but the general state of global energy. It's harmful to global energy markets. This decision is stupid for consumers, as well, because consumers should also realize that if they insist on prices that they like, prices will go down, investments will reduce to nothing, and prices will soar sky high in the end. And will hit those that propose such decisions," he said.