Reduced price cap to $47.60/bbl for Russian oil comes into effect that prohibits EU, UK companies from transporting

MOSCOW. Sept 3 (Interfax) - The price cap on Russian oil that prohibits European Union companies from transporting and providing related services will drop from $60 per barrel to $47.60 per barrel as of September 3.

The European Commission reached the decision as part of the 18th package of sanctions against Russia. Switzerland and Britain have also joined the sanctions, and Canada announced intentions to join the measure. The so-called Price Cap Coalition set the price cap at $60 per barrel, including the EU and G7 countries, as well as the United States. Washington did not join in lowering the cap, although the EU tried to achieve this.

The price cap of $60 per barrel is in effect for contracts concluded before July 20, and which met the condition on the date of the contract, until October 18 this year.

The price ceiling for petroleum products remains $100 per barrel for light petroleum products and $45 per barrel for heavier products.

With the 18th package of sanctions, the European Commission established that it would constantly review the ceiling, intending to set it at the level of the average price of Russian oil for a period of every 22 weeks, starting from July 15, reduced by 15%. However, if the price differs by 5% or less, the price ceiling will not be subject to change. The next date for publishing a new ceiling level is January 15, 2026.