LONDON, July 19 (NNN-AGENCIES) — On Friday, the UK announced lowering the Crude on Russian exports from $60 to $47.60 per barrel, joining the European Union in a coordinated effort to further curb Moscow’s ability to fund its war in Ukraine.
The updated cap will take effect at 23:01 BST on Tuesday, Sept 2, 2025. A 45-day wind-down period has been granted for existing contracts signed under the previous threshold.
The UK’s decision aligns with wider Western efforts to maintain economic pressure on the Kremlin’s oil sector—a key source of income that finances nearly a third of Russia’s federal budget.
Chancellor of the Exchequer Rachel Reeves, speaking from the G20 in South Africa, said: “This decisive step to lower the Crude Oil Price Cap will target Russia’s oil revenues and ramp up the pressure on Putin by exploiting his biggest vulnerability–while keeping energy markets stable.”
Foreign Secretary David Lammy emphasized the UK’s commitment to Ukraine, saying: “Together with our EU allies, we are continuing to apply pressure on Putin’s war machine by targeting the Russian energy sector. We will not stand by while peace is delayed.”
The Crude Oil Price Cap, introduced by the G7 in December 2022, restricts access to Western services such as shipping and insurance for Russian oil sold above the capped price. While the crude cap is now reduced, limits on refined oil products remain unchanged at $100 per barrel for diesel and petrol, and $45 per barrel for fuel oil.
The UK has already sanctioned over 250 ships involved in transporting Russian energy and has pledged approximately $3.9 billion per year in military aid to Ukraine—a commitment it says will continue for as long as necessary.
Earlier, the UK imposed new sanctions on Russian military intelligence officers linked to the bombing of the Mariupol Theatre and cyber attacks against Western targets. — NNN-AGENCIES
