Canada joins EU and UK in lowering Russian oil price cap to $47.60
Photo: depositphotos.com

Canada has decided to lower the price cap on Russian crude oil from $60 to $47.60 per barrel, following the same moves by the European Union and the United Kingdom, the country’s Ministry of Finance announced.

Canada had already banned imports of Russian oil in March 2022.

"By lowering the price cap on Russian crude oil, Canada and its partners are ratcheting up the economic pressure and limiting a crucial source of funding for Russia’s illegal war. Our government has been a steadfast ally to Ukraine, and we will continue to support them," said François-Philippe Champagne, Canada’s Minister of Finance and National Revenue.

The EU and the UK had earlier stated that the new price cap of $47.60 per barrel will take effect on September 3.

Price caps on Russian oil products remain unchanged: $100 per barrel for higher-value products (such as diesel and gasoline) and $45 per barrel for lower-value products (such as fuel oil).

The price cap mechanism, introduced in December 2022 at $60 per barrel, allows Western companies to insure and ship Russian oil by sea only if it is sold below the set limit. Coalition countries prohibit the transportation, insurance, or other servicing of Russian oil sold above the cap.

The coalition includes the G7 countries, Australia, and New Zealand.

  • Ukraine has consistently called for a much lower threshold, urging the cap on Russian oil to be set at $30 per barrel since the start of the initiative.