Russia Threatens to Cut Oil Output in Response to Western Sanctions

MOSCOW—Moscow threatens to cut oil production in response to Western price ceilings, setting the stage for an escalation of an energy war that parallels the conflict in Ukraine.

Speaking on state television on Friday, Deputy Prime Minister of Russia Alexander Novak for the first time detailed Moscow’s possible response to Western price ceilings, set earlier this month. Novak said Russia could reduce production by 500,000 to 700,000 barrels per day — which he describes as a 5% to 7% reduction in capacity — as early as next year.