Canada intends to lower price cap for Russian oil

From: Department of Finance Canada

News release

August 8, 2025 - Ottawa, Ontario - Department of Finance Canada

Canada maintains its staunch opposition to Russia’s unjust and unprovoked war against Ukraine and unwaveringly supports the Ukrainian people’s right to defend their freedom, sovereignty, and independence.

To that end, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, and the Honourable Anita Anand, Minister of Foreign Affairs, today announced that Canada intends to, alongside the European Union and the United Kingdom, further restrict Russia’s war efforts by lowering the price cap for seaborne Russian-origin crude oil from US$60 to US$47.60 per barrel. These actions are consistent with Prime Minister Carney’s announcement of measures in support of Ukraine at the G7 Summit including further sanctions on individuals, vessels and entities that continue to support Russia’s aggression in Ukraine.

The lower price cap will weaken Russia’s ability to fund its illegal war and exert renewed pressure on Putin’s military apparatus. The required regulatory changes in Canada are targeted for the coming weeks.

This price cap mechanism has been tactfully designed to reduce Russian revenues, and thus limit Russia’s ability to fund its war against Ukraine, while recognizing the supply chain limitations of global energy markets and minimizing negative economic spillovers. The mechanism allows for adjustments so that the price cap could be further reduced in the future.

Quotes

“By further lowering the price cap on Russian crude oil, Canada and its partners are ratcheting up the economic pressure and limiting a crucial source of funding for Russia’s illegal war. Our government has been a steadfast ally to Ukraine, and we will continue to support them in defending their territorial integrity, sovereignty, and peace for its people.”

- The Honourable François-Philippe Champagne,
Minister of Finance and National Revenue

“Canada has stood, and will continue to stand, with Ukraine and its brave people as they defend their sovereignty against Russia’s illegal invasion. Beyond the many direct supports Canada has provided in Ukraine’s defence, we also continue to apply pressure on Russia as well as deny it means to fund the ongoing war.”

- The Honourable Anita Anand,
Minister of Foreign Affairs

Quick facts

  • The price cap on seaborne Russian-origin crude oil was first implemented on December 2, 2022 following the full-scale invasion of Ukraine by Russia. The coalition includes the G7 as well as Australia and New Zealand. These countries collectively aim to restrict Russia’s ability to fund its war efforts by limiting the price at which Russian oil can be traded internationally, which includes shipping, insuring, or otherwise servicing Russian oil sold above US$60 per barrel.

  • The price caps of US$100 on high-value refined oil products, such as diesel and petrol, and US$45 on low-value refined oil products, such as fuel oil, remain unaffected.

  • Canada remains a member of the Price Cap Coalition and intends to follow future price adjustments agreed upon by the Coalition but may choose to set a lower price cap with other members of the Coalition.

  • Canada’s ban on direct imports of Russian oil—which came into force on March 10, 2022—remains in effect.  

  • Canada is a net exporter of crude oil, meaning it exports more than it imports each year. Canada does not import crude oil from Russia.

  • Since 2022, Canada has committed nearly $22 billion in multifaceted support for Ukraine, including financial, development, humanitarian, military, and security and stabilization assistance.

Associated links

Contacts

Media may contact:

John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
john.fragos@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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2025-08-08