UPDATE 1-Russia may cut oil output if price caps introduced - Deputy PM Novak
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MOSCOW, Oct 5 (Reuters) - Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia may cut oil production in order to offset negative effects from price caps imposed by the West over Moscow's actions in Ukraine.
The price cap plan agreed by G7 wealthy nations calls for participating countries to deny insurance, finance, brokering, navigation and other services to oil cargoes priced above a yet-to-be-determined price cap on crude and oil products.
The European Union is looking at an oil price cap to match the one agreed by the G7, diplomats said last month.
"We believe that this tool is in breach of all the market mechanisms. It could be very pernicious for the global oil industry... We will be ready to cut production (deliberately)," Novak said in televised comments.
Novak was also cited by TASS news agency as saying that Russia will produce 530 million tonnes of oil (10.6 million barrels per day) in 2022 and 490 million tonnes in 2023.
He said that Russia was ready to supply gas to Europe via one line of Nord Stream 2 pipeline if necessary. The pipeline was built in September 2021, but was abandoned by Germany just days before Moscow sent its troops into Ukraine on Feb. 24.
Novak also reiterated the Kremlin's statement that Russia must take part in investigations into last week's explosions in the two Nord Stream gas pipelines under the Baltic Sea. One line of twin Nord Stream 2 pipeline was left unscathed by the incidents. (Reporting by Vladimir Soldatkin Olesya Astakhova; editing by David Evans and Jonathan Oatis)