Russia will not export oil subject to Western price cap, deputy prime minister says - Reuters

MOSCOW, Dec 4 (Reuters) - Russia, the world's 2nd largest lipid exporter, volition not merchantability lipid that is taxable to a Western terms headdress adjacent if it has to chopped production, President Vladimir Putin's constituent antheral connected vigor said.

The Group of Seven and Australia connected Friday agreed a $60 per tube terms cap connected Russian seaborne crude lipid aft European Union members overcame absorption from Poland.

The determination by the West to prohibit shipping, security and re-insurance companies from handling cargoes of Russian crude supra the cap, is an effort to punish Putin for the Ukraine conflict.

Russian Deputy Prime Minister Alexander Novak said connected Sunday the determination by the West was a gross interference which contradicted the rules of escaped commercialized and would destabilise planetary vigor markets by triggering a shortage of supply.

"We are moving connected mechanisms to prohibit the usage of a terms headdress instrument, careless of what level is set, due to the fact that specified interference could further destabilise the market," said Novak, who is the Russian authorities authoritative successful complaint of the country's oil, gas, atomic vigor and coal.

"We volition merchantability lipid and petroleum products lone to those countries that volition enactment with america nether marketplace conditions, adjacent if we person to trim accumulation a little," helium added.

Novak said the Western headdress could trigger occupation successful the products markets and could impact different countries beside Russia.

'FROZEN'

It is unclear what, if any, contiguous interaction the Western headdress volition person connected Russian lipid flows due to the fact that the discounted terms to Brent for Russian blends has widened truthful significantly.

Urals blend , was trading astatine astir $61.3 per tube - conscionable implicit 1 dollar supra the headdress level. Brent crude futures closed astatine $85.57 per tube connected Friday.

Selling lipid and state to Europe has been 1 of the main sources for Russian overseas currency net since Soviet geologists recovered lipid and state successful the swamps of Siberia successful the decades aft World War Two.

A root who asked not to beryllium identified owed to the sensitivity of the concern told Reuters that a decree was being prepared to prohibit Russian companies and traders from interacting with countries and companies guided by the cap.

In essence, specified a decree would prohibition the export of lipid and petroleum products to countries and companies that use it.

Since helium ordered the Feb. 24 subject cognition successful Ukraine, Putin says the United States and its allies person embarked connected economical warfare against Russia with the astir terrible sanctions successful modern history, informing that they volition look a vigor crisis.

Putin successful September warned the West that helium could chopped disconnected vigor supplies if terms caps were imposed, telling them that Europe would beryllium "frozen" similar a wolf's tail successful a well-known Russian fairy tale.

Russia tin access capable tankers to vessel astir of its lipid beyond the scope of a caller G7 terms cap, manufacture players and a U.S. authoritative told Reuters successful October, underscoring the limits of the astir ambitious program yet to curb Moscow's wartime revenue.

Reporting by Reuters; editing by Guy Faulconbridge and Alexander Smith

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