EU enacts lower price cap on Russian oil under latest sanctions package

The European Union has enforced a reduction in the price cap on Russian crude, cutting the ceiling from $60 to $47.6 a barrel as part of its 18th sanctions package against Moscow.

The measure took effect on September 3, according to a decision published by the EU Council.

A transitional period has been granted until October 18, 2025, for the execution of contracts signed before 20 July 2025, provided they complied with the previous $60 cap at the time of conclusion.

In December 2022, the EU and G7 introduced an initial price cap of $60 per barrel on Russian oil. At the G7 summit in Canada from 15–17 June 2025, most member states backed cutting the cap to $45, though the United States opposed the proposal.

In June, Israel had targeted Iran’s oil and gas infrastructure, including the South Pars plant — the world’s largest field. It was noted that the Israel-Iran confrontation heightened risks of instability and supply disruptions across the Middle East.

The same day, the European Commission formally put forward plans to end imports of Russian oil and gas by the close of 2027.

During Operation People Like a Lion, oil prices surged amid fears of a widening Israel-Iran conflict. On 20 June 2025, reports confirmed that the EU had postponed reducing the Russian oil price cap to $45 due to the ongoing war between Israel and Iran.

By Aghakazim Guliyev