Russian President Vladimir Putin threatens to lower oil production after a slew of Western nations have agreed to introduce a price cap of USD 60 for a barrel of Russian oil.

He expressed this view at a press conference held during a summit in Kyrgyzstan.

He calls the price cap ”stupid” and reiterates that Russia will no longer sell oil to nations that have adopted it.

”I have already said that we simply will not sell to those countries that make such decisions,” says Putin and adds:

”We will think, maybe, even about a possible, if necessary ... reduction in production.”

However, he also adds that Russia has an output agreement with other members of the Organization of Oil Exporting Countries and allies in OPEC+. Such a drastic step is therefore still only a possibility.

”We are considering it, but there are no solutions yet,” Putin says and adds that more details will follow when he issues a decree within coming days.

When ranking the biggest oil exporters in the world, Russia is second only to Saudi Arabia.

Meanwhile, Russia is still the biggest exporter of gas.

Putin further notes that the price cap will not lead to money loss for Russia.

This is, in his view, because the price cap of USD 60 more or less tallies with the current price level for oil in Russia.

Nevertheless, he warns that the price cap will lead to a global collapse in the oil industry and a surge in oil prices.

”It is a stupid proposal, ill-conceived and poorly thought-out,” Putin says.

For decades, the sale of oil and gas to Europe has been one of the most vital sources of foreign currency earnings for Russia.

The Western nations’ price cap is intended to intensify pressure on Russia economically. To a large extent, the war waged by Russia in Ukraine is funded by profits from the sale of oil and gas.

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