The European Union will lower the price ceiling for Russian oil to $44.1 per barrel from February 1.
Points of attention
- EU is reducing the price ceiling for Russian oil to $44.1 per barrel starting February 1.
- The price restrictions include bans on services for oil supplied above the set limit.
- The EU's mechanism will be reviewed periodically based on market conditions and the effectiveness of the measures.
EU lowers price ceiling for Russian oil from February 1
In early December 2022, the G7 countries, as well as Australia and the EU, introduced price caps on Russian oil, setting a maximum level of $60 per barrel.
Since February 2023, these countries have imposed a new price ceiling on Russian petroleum products: $100 for diesel fuel and $45 for various lubricants. In September 2025, the price ceiling was lowered to $47.6 per barrel.
And from February 1, 2026, the price ceiling for Russian oil will be $44.1 per barrel.
The restrictions include a ban on the provision of transport, insurance and financial services for the supply of Russian oil, which is sold above the established limit.
The EU emphasizes that the mechanism will be reviewed taking into account market conditions and the effectiveness of restrictive measures.
As a reminder, the price ceiling for Russian oil sets the maximum price at which countries can buy it from Russia. Transport and insurance companies will not be able to provide their services for transactions where the oil price is higher than the ceiling.
Since December 2022, the G7 ceiling has been in effect at $60 per barrel.
The EU price ceiling will be automatically reviewed at least twice a year, depending on market prices. It will be set based on the average oil price over the past 3 months, minus 15%.
In order to maintain oil exports, Russia can either reduce the price of oil or use the so-called "shadow fleet". These can be old tankers that are not subject to strict control, tankers registered in countries with more lenient rules for transportation, such as Panama or Liberia. For oil transportation, the Russian Federation uses the tanker fleet of Greece, Malta, Cyprus.
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