Canada hits Kremlin by lowering price cap on Russian oil
Photo: Canadian finance minister François-Philippe Champagne (Getty Images)
Canada is increasing its pressure on Russia, lowering the price cap on Russian oil by as much as 12%.
This was announced by Canadian finance minister François-Philippe Champagne, according to Ukrinform.
Canada has intensified its economic pressure on Russia by targeting one of its key sources of revenue. By reducing oil income, Canada aims to directly limit Russia’s ability to finance the war in Ukraine.
The ministry of finance specified that the price cap on Russian oil has been lowered from 60 dollars to 47.6 dollars per barrel, a decrease of 12 percent. Minister François-Philippe Champagne emphasized that sanctions against Russia will remain in place.
According to the ministry, the adjustment of the price cap reflects market realities while sending a clear signal that the sanctions will stay tough, targeted, and effective for as long as necessary.
The ministry also noted that the reduction of the price cap was coordinated with the European Union and the United Kingdom.
Background
On July 18, the EU adopted its 18th package of sanctions against Russia, which included lowering the maximum price for Russian oil from 60 to 47.6 US dollars.
The package also introduced an automatic and dynamic mechanism for setting future price limits, requiring the cap to remain 15 percent below the average market price of Urals crude for the previous reporting period.
