The UK government has adopted a decision that lowers the "cap price" for Russian oil, as agreed earlier today in the EU as part of the 18th package of sanctions against Moscow.
Points of attention
- Britain's reduction of the limit price for Russian oil will lead to restrictions on Putin's oil industry and a decrease in the market value of oil.
- The move is aimed at tightening the screws on the Kremlin by limiting revenues from oil sales, a key source of funding for the illegal war in Ukraine.
- The EU's 18th package of sanctions includes lowering the ceiling price for Russian crude oil, showcasing a decisive effort to target Russia's oil revenues and increase pressure on Putin.
Britain lowers price ceiling for Russian oil
This is stated in the government press release.
Today's decision will lower the "limit price" for Russian crude oil from $60 per barrel to $47.6.
This is expected to directly impact Russia's oil revenues, which have already fallen by 35% compared to last year.
It is noted that such a move would lead to restrictions on Putin's oil industry, reduce the market value of Russian crude oil and harm a key source of funding for the Kremlin's illegal war in Ukraine.
The UK and its EU allies are tightening the screws on the Kremlin’s profits, further cutting off the most valuable funding stream for its illegal war in Ukraine. This decisive move to lower the “ceiling price” on crude oil will target Russia’s oil revenues and increase pressure on Putin, exploiting his greatest vulnerability, while maintaining stability in energy markets, said UK Chancellor of the Exchequer Rachel Reeves.
On July 18, the European Union approved another, 18th package of sanctions against the Russian Federation, "one of the toughest" at the moment.
In particular, the EU is reducing the "limit price" for Russian crude oil from $60 to $47.6 per barrel.
