Canada joins EU and UK to lower the Russian oil price cap to $47.60 in a move aimed at cutting Kremlin revenues while avoiding shocks to global markets. The change, due in early September, leaves Japan and the US as the only G7 members not adopting the reduced limit.
Canada aligns with European allies on oil sanctions
On 8 August, the Department of Finance of Canada confirmed Ottawa will match the European Union and United Kingdom in reducing the price cap on seaborne Russian-origin crude oil from $60 to $47.60 per barrel. The measure is part of the G7-led sanctions mechanism introduced in December 2022 to restrict Moscow’s war funding. The coalition also includes Australia and New Zealand.
Finance Minister François-Philippe Champagne said the cut would increase economic pressure on Russia and limit a crucial source of funding for its war in Ukraine. Foreign Minister Anita Anand stressed Canada’s commitment to applying sustained pressure on Moscow. Kyiv has pressed for an even lower $30 limit.
Japan and US not joining the cut
Most G7 members will introduce the lower cap in September. Japan and the US have not signed on, but Canada remains part of the Price Cap Coalition and may follow future reductions agreed within the group.