EU Tightens the Screws Again: Price Cap on Russian Oil Lowered
Economy
The European Union is further tightening restrictions on Russian oil by lowering the price cap below current market levels.
Starting February 1, the European Union will reduce the price cap on Russian oil from $47.6 to $44.1 per barrel, according to a decision published in the EU’s Official Journal.
The price cap mechanism, which bans the purchase of Russian oil above a set threshold, was first introduced by the EU in late 2022. Initially, the cap was set at $60 per barrel. In 2025, it was lowered to $47.6 and has now been reduced further.
Meanwhile, market prices for Russia’s Urals crude continue to decline. According to Russia’s Ministry of Economic Development, the average price of Urals crude fell to $39.18 per barrel in December, well below the new EU price cap.
Analysts note that the latest reduction is largely symbolic, as market prices are already trading below the imposed ceiling.
The price cap mechanism, which bans the purchase of Russian oil above a set threshold, was first introduced by the EU in late 2022. Initially, the cap was set at $60 per barrel. In 2025, it was lowered to $47.6 and has now been reduced further.
Meanwhile, market prices for Russia’s Urals crude continue to decline. According to Russia’s Ministry of Economic Development, the average price of Urals crude fell to $39.18 per barrel in December, well below the new EU price cap.
Analysts note that the latest reduction is largely symbolic, as market prices are already trading below the imposed ceiling.
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