Canada lowers Russian crude oil price cap under sanctions regulations

What changed

Global Affairs Canada said Foreign Affairs Minister Anita Anand and Finance and National Revenue Minister François-Philippe Champagne announced amendments to the Special Economic Measures (Russia) Regulations to further reduce revenues flowing to Russia from its oil exports.

In alignment with measures announced by the European Union and the United Kingdom, Canada lowered its price cap for Russian crude oil from US$60 to US$47.60 per barrel.

Timing and transition

The release said the new oil price cap includes a 45-day non-application period for goods loaded onto a vessel and unloaded at their destination within 45 days after the amendments come into force.

Scope and purpose as stated

Canada said the measures are designed to reflect current market conditions and reduce Russia’s ability to profit from energy exports. The government also said the amendments are intended to provide flexibility to make future adjustments to the cap.

The announcement said the changes form part of Canada’s broader strategy to deprive Russia of financial means related to its war against Ukraine, limit access to global markets, target its “shadow fleet,” and strengthen the impact of coordinated sanctions.

Statements

“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.

“Canada is strengthening economic pressure on Russia by targeting one of its key sources of revenue. By cutting into its oil revenues, we are directly limiting Russia’s ability to fund its illegal war in Ukraine. 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.

Background cited by Canada

Canada said it first implemented oil price cap measures against Russia in December 2022. The release also noted that on July 18, 2025, the European Union announced a new round of sanctions that included a dynamic price cap mechanism, and the United Kingdom announced it had lowered the price cap in its jurisdiction without introducing a dynamic mechanism.