Canada supports lowering price cap on Russian oil

Volodymyr Tunik-Fryz - 9 August, 10:18

Stock Photo: Getty Images

François-Philippe Champagne, Canadian Minister of Finance and National Revenue, and Anita Anand, Minister of Foreign Affairs, have stated that the country intends to join the EU and the United Kingdom in further lowering the price cap on Russian-origin oil.

Source: Government of Canada

Details: The price cap will be reduced from US$60 to US$47.60 per barrel.

Quote: "The lower price cap will weaken Russia's ability to fund its illegal war and exert renewed pressure on Putin's military apparatus. The required regulatory changes in Canada are targeted for the coming weeks."

Details: The statement added that the price reduction mechanism recognises supply chain constraints in global energy markets and minimises negative economic impacts. The mechanism allows for adjustments so that price restrictions can be lowered even further in the future.

Background:

In May, the EU proposed to the finance ministers of the G7 countries that they reduce the current price cap (US$60 per barrel) on Russian oil transported by sea.
In July, Russia's state oil and gas revenues were projected to fall by 37% year-on-year to RUB 680 billion (US$8.66 billion) because of cheaper oil and a stronger currency.

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