Photo: EPA

The United Kingdom has joined the European Union in reducing the price cap on Russian crude oil from $60 to $47.60 per barrel, according to a statement released by the UK government on Friday, July 18.

The new cap of $47.60 per barrel will take effect in 46 days — on September 2, 2025, at 23:01 UK time.

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

"Every financial blow to Russia's oil revenues is another step towards a just and sustainable peace in Ukraine," the UK government said in the statement.

Energy revenues account for roughly 30% of Russia’s federal budget, funding its military operations.

The UK plays a key role in the G7 coalition, with a strong maritime sector that includes control over a significant share of global tanker insurance. The International Group of P&I Clubs — a London-based consortium of mutual shipowners’ insurers — makes the UK a global leader in marine Protection and Indemnity (P&I) insurance.

  • The price cap mechanism, introduced in December 2022 at $60 per barrel, allows Western companies to provide insurance and shipping services for Russian oil only if it is sold below the specified price threshold. In addition, the United States and European Union imposed embargoes on most Russian oil imports following the full-scale invasion of Ukraine.
  • Since the beginning, Ukraine has been urging allies to lower the cap to $30 per barrel.