Canada joins EU, UK push to lower Russian oil price cap
Photo: Canada wants to lower the price cap for Russian oil (Getty Images)
Canada, together with the European Union and the United Kingdom, plans to lower the price cap for oil of Russian origin, according to the press service of the Canadian government.
The price cap will eventually be reduced from $60 to $47.60 per barrel.
"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," the Canadian government said in a statement.
The price reduction mechanism recognizes supply chain constraints in global energy markets and minimizes negative economic consequences. The newly proposed mechanism allows for adjustments so that price caps can be further reduced in the future.
"By further lowering the price cap on Russian crude oil, Canada and its partners are ratcheting up the economic pressure and limiting a crucial source of funding for Russia’s illegal war. Our government has been a steadfast ally to Ukraine, and we will continue to support them in defending their territorial integrity, sovereignty, and peace for its people," said Finance Minister François-Philippe Champagne.
New restrictions on Russian oil prices
On July 18, the European Union introduced a new package of sanctions against Russia. Among other things, it provides for a new price cap on Russian oil. Previously, it was $60 per barrel, but now the price cap is about $46 per barrel.
Read more about the new sanctions in RBC-Ukraine's report.
The Office of the President of Ukraine is confident that Russia could lose between $15 and $30 billion in oil revenues by the end of 2025 due to the new sanctions. If this factor is used to its fullest, Russia will lose the most money.
Earlier, US President Donald Trump also said that if the oil price declines, it will force Vladimir Putin to stop the killings in the war against Ukraine. According to him, oil prices should be reduced by another $10 per barrel.
