EU Lowers Russian Oil Price Cap to $44.1 Effective February 1
The move implements the EU’s automatic mechanism to curb Moscow’s oil revenue.
Overview
- The Council’s decision was published in the EU’s Official Journal on January 15 and takes effect on February 1, 2026.
- Pre-existing contracts signed before February 1 may continue at the $47.6 level until April 16, 2026 under a transition provision.
- The cap was first set at $60 in December 2022 and moved to $47.6 in 2025 when an automatic, dynamic adjustment mechanism was adopted.
- Russia prohibits sales that comply with the cap, with its export ban currently extended through June 30, 2026, according to RBC.
- G7 and EU policymakers have discussed potentially replacing the cap with a full ban on maritime services for Russian oil, Reuters reported in December.