Canada maintains its staunch opposition to Russia's unjust and unprovoked war against Ukraine and unwaveringly supports the Ukrainian people's right to defend their freedom, sovereignty, and independence.
To that end, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, and the Honourable Anita Anand, Minister of Foreign Affairs, today announced that Canada intends to, alongside the European Union and the United Kingdom, further restrict Russian's war efforts by lowering the price cap for seaborne Russian-origin crude oil from US$60 to US$47.60 per barrel. These actions are consistent with Prime Minister Carney's announcement of measures in support of Ukraine at the G7 Summit including further sanctions on individuals, vessels and entities that continue to support Russia's aggression in Ukraine.
The lower price cap will weaken Russia's ability to fund its illegal war and exert renewed pressure on Putin's military apparatus. The required regulatory changes in Canada are targeted for the coming weeks.
This price cap mechanism has been tactfully designed to reduce Russian revenues, and thus limit Russia's ability to fund its war against Ukraine, while recognizing the supply chain limitations of global energy markets and minimizing negative economic spillovers. The mechanism allows for adjustments so that the price cap could be further reduced in the future.
