Canada joins EU, UK in Russian oil cap slash
Canadian Finance Minister François-Philippe Champagne (Photo: REUTERS/Blair Gable)
Ottawa will join Brussels and London in lowering the price cap for Russian oil by 12% to make it harder for the Kremlin to fund its ongoing aggression against Ukraine, Canada’s Foreign Minister Anita Anand and Finance Minister François-Philippe Champagne announced amendments to the Special Economic Measures (Russia) Regulations on Sep. 3.
Canada will lower the price cap for seaborne Russian-origin crude oil to $47.60 from $60 per barrel to further reduce revenues flowing to Moscow from its oil exports.
“Canada is taking decisive action to reduce Russia’s oil revenues and limit Russia’s ability to fund its war machine. By aligning with our partners and adapting to market conditions, we are reinforcing our commitment to Ukraine and to international peace and security,” Anand said.
The new oil price cap provides a 45-day non-application period for goods loaded onto a vessel and unloaded at their destination within 45 days after the amendments take effect.
“This price cap adjustment reflects market realities, but above all, it sends a clear message: our sanctions will remain tough, targeted, and effective for as long as it takes,” Champagne said.
Canada remains committed to working with international partners to ensure that sanctions are effective, adaptive and aligned with evolving geopolitical and market realities.
Ottawa first implemented oil price cap measures against Russia in December 2022.
On July 18, 2025, the European Union announced a new round of sanctions, which included a new dynamic price cap mechanism that automatically sets Europe’s price cap for Russian crude oil to the average price of Urals (Russian oil) over a period comprising the previous 22 weeks, minus 15%. This measure will be adjusted every six months.
That same day, the United Kingdom announced that it had lowered the price cap on Russian oil in its jurisdiction, without introducing the dynamic mechanism.
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