EU Lowers Price Cap on Russian Oil to $44.1 per Barrel
The European Council has decided to lower the price cap on Russian crude oil to $44.1 per barrel, effective February 1. This move is part of the broader sanctions imposed by Western nations in response to Russia’s ongoing military actions in Ukraine.
Initially set at $60 per barrel at the end of 2022, the cap was reduced to $47.6 in early autumn 2025. The current rate will remain in effect until January 31, after which the new limit will be enforced.
Russia Extends Export Ban Until Mid-2026
In retaliation, Russia has extended its decree banning oil and petroleum product exports to countries complying with the price cap until June 30, 2026. Russian Deputy Prime Minister Alexander Novak argued that the cap harms the EU more than Russia and has had no real impact on Russian export volumes. “When the $60 cap was introduced, we saw no effect. This means even reducing it to zero would make no difference,” Novak stated.
Additional Restrictions on Refined Products
In February 2023, further restrictions were introduced on refined petroleum products. A $100 per barrel cap was set for diesel, which typically trades at a premium to crude, while a $45 cap was imposed on discounted fuel oil.
G7 and EU Consider Full Ban on Maritime Services
According to a December report by Reuters, the G7 and EU have been discussing a more drastic measure: a complete ban on maritime services for Russian oil shipments, replacing the current price cap mechanism. The EU had also previously considered a system to automatically revise the cap every three months based on market prices.
