Canada Lowers Russian Oil Price Cap to Historic Lows Amid New International Sanction Coalition
Canada has officially announced a significant reduction in the price limit imposed on imported Russian oil, setting a new cap at $47.6 per barrel.
This move is part of a broad international initiative aimed at intensifying economic pressure on Russia by curbing its earnings from energy exports.
Foreign Minister Anita Anand and Finance Minister François-Philippe Champagne disclosed that relevant amendments have been made to the Special Economic Measures Regulations, which include lowering the maximum price at which Russian crude oil can be sold on global markets.
The Canadian government stated that this step considers current market realities and allows for swift future adjustments of the mechanism if further reductions become necessary.
The new measure aligns with similar actions taken by the European Union and the United Kingdom, which have implemented dynamic mechanisms over recent months.
Under the new regulations, a transitional period of 45 days has been established during which existing oil shipments will remain unaffected, providing stability in deliveries.
Canadian officials emphasize that these measures aim to cut off Russia’s military funding and support Ukraine by uniting international efforts.
Finance Minister Champagne highlighted that the new restrictions target key revenue sources for the Kremlin and reflect Canada’s unwavering commitment to a tough sanctions policy that will continue as long as needed.
The price cap on Russian oil was first introduced by Canada in late 2022.
Recently, the measures are part of a global strategy, including the European Union’s adoption of a dynamic mechanism in July 2025 that automatically sets the ceiling based on the average Urals crude price over the past 22 weeks, minus 15%.
The United Kingdom also announced a reduction in the maximum price, although without a dynamic mechanism.
Officials stress that such coordinated actions are crucial in depriving Russia of resources for further aggression, diminishing its influence on global energy markets.
Additionally, Ukraine will receive over a billion dollars worth of military aid and financial support from Canada in September.
On August 24, Ukraine’s Independence Day, Prime Minister Mark Carney visited Kyiv for the first time since his appointment, expressing Canada’s support for Ukraine and pledging to strengthen efforts toward a just and lasting peace.