Russia will not export oil subject to Western price cap - Novak says

Russia will not export oil that is subject a Western-imposed price cap even if Moscow has to accept a drop in oil production, President Vladimir Putin's point man on energy said on Sunday.

"We are working on mechanisms to prohibit the use of a price cap instrument, regardless of what level is set, because such interference could further destabilise the market," Russian Deputy Prime Minister Alexander Novak said. Russia will not operate under a price cap, even if Moscow has to cut production, Novak said.

On Friday, G7 nations and Australia agreed a $60 per barrel price cap on Russian seaborne crude oil in a move to deprive President Vladimir Putin of revenue while keeping Russian oil flowing to global markets.