UK lowers Russian oil price cap to $47.6 per barrel
The U.K. has joined an EU initiative to lower the price cap on Russian seaborne oil exports to $47.6 per barrel, the British government announced on July 18.
The previous $60 per barrel cap was imposed by the G7 in December 2022 to limit Russia's oil profits while avoiding a global supply shock.
The move is expected to further slash Russia's income from energy exports, "which have already fallen 35% year-on-year to May," according to the British government.
"As (Russian President Vladimir) Putin continues to stall on serious peace talks, we will not stand by," British Foreign Secretary David Lammy said. "We're striking at the heart of the Russian energy sector alongside the EU."
The European Union also approved its 18th package of sanctions against Russia on July 18, which includes the revised oil cap.
Russia's budget is under increasing strain due to high military spending. Russia's Finance Ministry has grown more dependent on energy revenues, particularly oil exports, to fund operations in Ukraine.
The price cap applies to services such as insurance and shipping. Under the new rules, Western firms may only handle Russian oil shipments if the crude is sold at or below the $47.6 limit.
Companies have until Sept. 2 to comply with the revised ceiling, the British authorities said.
