Russian Deputy Prime Minister Alexander Novak said on Friday that the European Union's proposed price cap on Russian oil would not affect production in December, Interfax news agency reported.

He was quoted as saying that Russia believes its oil will be in demand, although there is a lot of uncertainty.

European Union governments have tentatively agreed to cap the price of seaborne Russian oil at $60 a barrel, with an adjustment mechanism to keep the cap at 5 percent below the market price, according to diplomats and a document seen by Reuters.