The Kremlin will mandate Russian oil producers to reduce output and avoid compliance to a recently introduced price cap mechanism, according to the country’s deputy prime minister in charge of energy issues Alexander Novak.

Novak told a state television channel that any deliveries of Russian oil to customers, insisting on contracts with the price cap conditions, would mean “falling into dependence on unfriendly countries”.

According to Novak, while more Russian crude and products can be sent to Asia, Pacific and Africa to avoid new price restrictions, there may still be a need for producers to cut their oil output by between 500,000 barrels per day and 700,000 barrels per day.

Buyers have shown a growing reluctance to take Urals deliveries following the introduction of the European embargo on Russian oil supplies and the G7 price cap mechanism. With Brent hovering below $80 per barrel earlier in December, such discount has meant that cargoes were already priced well below the cap.