Canada cuts Russian oil price cap to curb war revenues

By Merve Aydogan

HAMILTON, Canada (AA) - Canada tightened sanctions on Russian oil Wednesday by lowering the price cap for seaborne Russian-origin crude, aiming to reduce Moscow's revenue from energy exports amid the war in Ukraine.

"The Honourable Anita Anand, Minister of Foreign Affairs, and the Honourable Francois-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," the Foreign Ministry said in a statement.

The new measure cuts the price cap for Russian crude 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," the ministry said.

The rules also include a 45-day non-application period for goods loaded onto a vessel and unloaded at their destination within 45 days after the changes take effect.

Canada said the sanctions are part of a 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."

The government added that it will work with allies to "ensure that sanctions are effective, adaptive and aligned with evolving geopolitical and market realities."