UK follows EU in lowering Russian oil price ceiling

Starting January 31, the United Kingdom will lower the price cap on Russian oil from $47.6 to $44.1 per barrel, according to a document from the UK’s Office of Financial Sanctions Implementation (OFSI). The European Union has taken the same decision.

A transitional period will remain in effect until April 16, 2026, allowing payments at the current US$47.6 per barrel rate for contracts concluded before February 1. These measures are part of the EU’s ongoing efforts to pressure Russia amid its continuing invasion of Ukraine.

The price cap was initially set at $47.6 per barrel on September 3, 2025, down from the previous US$60 per barrel. Meanwhile, the United Kingdom is reportedly considering using oil seized from vessels in Russia’s so-called “shadow fleet” to finance military aid for Ukraine.

In parallel, the EU is preparing to approve its 20th sanctions package against Russia to coincide with the anniversary of the full-scale invasion. This package is expected to include travel restrictions and asset freezes targeting individuals and organisations, with particular emphasis on those involved in the removal and ideological re-education of children.

Diplomatic sources indicate that additional sanctions will target the energy and banking sectors, and measures are planned to close loopholes used to evade existing sanctions.

Brussels is also considering a ban on Russian uranium imports, which would effectively impose sanctions on the Russian Federal Agency for Atomic Energy (Rosatom). While several EU countries have long advocated for this step, resistance remains from nations such as France and Belgium. These countries could still source uranium for their nuclear plants from South Africa, Australia, or Canada, albeit at higher costs.

The most recent EU sanctions package was adopted on October 23, 2025.

By Tamilla Hasanova