G7, Australia Cut Russian Oil Revenues with Price Cap Expansion

Department of Finance Canada

Today, Canada, our G7 partners, and Australia are moving forward with two price caps for seaborne Russian-origin petroleum products, which build on the Russian crude oil price cap announced on December 2, 2022. Together, these price caps will further weaken Putin’s ability to fund his illegal and barbaric war against Ukraine.

As of February 5, 2023, the maximum price for seaborne Russian-origin petroleum products will be US$100 per barrel for “premium-to-crude” products, and US$45 for “discount-to-crude” petroleum products.

These two additional price caps will be enforced in the same manner as the crude oil price cap: by prohibiting buyers who do not abide by the price caps from obtaining services, like shippers’ insurance, from companies in any of the Coalition countries (G7 partners and Australia).

The price cap mechanism has been carefully designed to reduce Russian revenues and limit Russia’s ability to fund its war against Ukraine, while also recognizing the importance of stable energy markets and minimizing negative economic impacts. The Coalition will continue to enforce, monitor, and adjust the price caps to ensure their effectiveness.

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