Canada strengthens oil price cap measures to curb Russian war revenues
News release
September 3, 2025 - Ottawa, Ontario - Global Affairs Canada
The Honourable Anita Anand, Minister of Foreign Affairs, and the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, today announced amendments to the Special Economic Measures (Russia) Regulations to further reduce revenues flowing to Russia from its oil exports. These amendments follow a commitment made by Canada on August 8, 2025, to lower the price cap for Russian oil, after the European Union and the United Kingdom announced similar measures.
As G7 president, Canada is working closely with its allies and partners to increase pressure on Russia and support Ukraine’s long-term security and recovery. In alignment with the European Union and the United Kingdom’s recently announced measures, Canada has lowered its price cap for Russian crude oil from US$60 to US$47.60 per barrel. These oil price cap measures will be implemented in a manner that gives Canada the flexibility to make future adjustments should decisions be made to further reduce the price cap. They are also designed to reflect current market conditions and reduce Russia’s ability to profit from its energy exports.
The new oil price cap provides 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.
These measures are part of Canada’s broader strategy to deprive Russia of the financial means to sustain its unjustified and unprovoked war against Ukraine; limit its access to global markets; target its shadow fleet; and strengthen the impact of coordinated sanctions.
Canada remains committed to working with international partners to ensure that sanctions are effective, adaptive and aligned with evolving geopolitical and market realities.
Quotes
“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.”
- Anita Anand, Minister of Foreign Affairs
“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”
- François-Philippe Champagne, Minister of Finance and National Revenue
Quick facts
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Canada first implemented oil price cap measures against Russia in December 2022.
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On July 18, 2025, the European Union announced a new round of sanctions, which included a new dynamic price cap mechanism that automatically sets Europe’s price cap for Russian crude oil to the average price of Urals (Russian oil) over a period comprising the previous 22 weeks, minus 15%. This measure will be adjusted every six months.
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Also on July 18, 2025, the United Kingdom announced that it had lowered the price cap on Russian oil in its jurisdiction, without introducing the dynamic mechanism.
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