Russia’s decision to cut crude oil production by 500,000 barrels a day reflects its inability to sell all of its oil, US Assistant Treasury Secretary Ben Harris said on Thursday, according to Reuters.

Russian Deputy Prime Minister Oleksandr Novak said last week that Russia will voluntarily cut output starting next month after Western countries impose price caps on Russian oil and oil products on February 5. A cut of about 5% in production temporarily boosted global prices.

“They cut production because they just couldn’t sell it (oil), not because they wanted to increase production of oil and petroleum products,” Harris said.

The cuts followed embargoes and sanctions, including an unprecedented cap on crude oil of $60 a barrel, imposed by Western countries to punish Moscow for its invasion of Ukraine. Poland, Latvia, Lithuania and Estonia insisted on reducing the limit on crude oil.

Russia’s monthly oil and gas budget revenue fell 46 percent in January to its lowest level since August 2020, hit by Western sanctions on its top-grossing export, according to data from the Finance Ministry.

According to Harris, the restriction was aimed at maintaining market stability and reducing Russian revenues, both of which were achieved.

He added that no American companies were involved in trading Russian oil above the maximum price.

It’s unclear whether Russia will halt crude production due to logistical difficulties with oil restrictions or whether production cuts will continue, said Michael Cohen, BP’s chief U.S. economist.