EU sets date for new Russian oil price cap to take effect

The European Commission has confirmed that the European Union’s revised and dynamic price cap on Russian oil—outlined in the EU’s 18th package of sanctions — will officially take effect on September 3, 2025.

This was confirmed to Ukrainian media by Arianna Podesta, Deputy Chief Spokesperson for the European Commission.

“The reduced oil price cap will apply from September 3, 2025,” Podesta said.

Under the new sanctions package, the EU will introduce a dynamic pricing mechanism for Russian oil, replacing the fixed cap system. The new cap will be set at 15% below the average market price of oil over the previous three months. Based on current data, this would place the price cap at approximately $47.6.

Podesta also noted that most provisions of the 18th sanctions package came into force in mid-July, shortly after being approved by the EU Council. In addition, she announced that a ban on transactions involving 22 additional Russian banks will be implemented starting August 8, 2025.

The 18th sanctions package, formally adopted on July 18, faced delays due to resistance from Slovakia and Malta before final approval. Alongside the new oil price cap formula, it includes broader financial and trade restrictions.

Meanwhile, Ukraine has already submitted proposals for a 19th round of EU sanctions, continuing its push for tighter economic pressure on Russia.

By Tamilla Hasanova