Why is the EU considering keeping the Russian oil price cap at $44 per barrel in its July review?

The European Commission may propose leaving the G7 price cap on Russian crude unchanged at $44 per barrel in its July review to curb Moscow's windfall from the Iran war and the ensuing oil price shock, as stated by EU diplomats. This decision is being floated as part of the forthcoming 21st package of sanctions against Russia for its war in Ukraine, aiming to sustain pressure on Russia’s revenue without triggering a global oil price shock.

What is the current status and mechanism of the G7 price cap on Russian oil, and how much of Russia’s seaborne oil trade still operates under it?

The G7 price cap on Russian crude—initially set in late 2022 at $60 per barrel—was lowered to $47.60 and then to $44.10 in January to reflect lower average oil prices; the EU now considers keeping it unchanged at $44. Under the mechanism, third countries can purchase Russian oil up to that capped price using Western shipping and insurance services, and up to 30% of seaborne Russian oil is still traded under the cap, while the rest is moved by a shadow fleet.

EU May Keep Russian Oil Price Cap Unchanged at $44 Per Barrel to Pressure Moscow

Jun 1, 2026

The European Commission plans to maintain the G7 price cap on Russian crude at $44 per barrel during its upcoming review. This move aims to curb Moscow's revenue from the war while avoiding global oil price shocks amidst current market volatility.

reuters

2026-06-01

EU May Keep Russian Oil Price Cap Unchanged at $44 Per Barrel to Pressure Moscow

EU May Keep Russian Oil Price Cap Unchanged at $44 Per Barrel to Pressure Moscow

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