Canada Cuts Price Cap on Russian Oil to $47.60 per Barrel

The Government of Canada announced a reduction in the price cap for Russian crude oil, lowering it from $60 to $47.60 per barrel.

This decision aligns with similar measures previously enacted by the European Union and the United Kingdom and is designed to further limit Russia’s revenue from energy exports. The reduction of the price cap aims to intensify economic pressure on Moscow amid the ongoing conflict with Ukraine.

Canada is collaborating closely with its allies and partners to increase pressure on Russia while supporting Ukraine’s long-term security and recovery. These oil price cap measures will be implemented in a way that allows Canada the flexibility to make future adjustments if further reductions to the price cap are deemed necessary. They are also designed to reflect current market conditions and limit Russia’s ability to profit from its energy exports.

The new oil price cap includes a 45-day non-application period for goods loaded onto a vessel and unloaded at their destination within 45 days after the amendments take effect. The strategy aims to limit Russia’s access to global markets, target its shadow fleet.