Dialogos

EU Reduces Price Cap on Russian Oil to $44.10 a Barrel

Published January 15, 2026, 17:02
EU Reduces Price Cap on Russian Oil to $44.10 a Barrel

The European Union is implementing a new, reduced price cap on Russian crude oil, set at $44.10 per barrel, from February 1st, as part of the 18th package of sanctions. This cap is now determined by an automatic and dynamic mechanism, lowering it by 15% compared to the average market price of Russian Urals crude over the previous 22-week period. The new price is 7% lower than the previous one ($47.60), triggering the reduction. A 90-day transition period is also provided for the execution of existing contracts. The EU's goal is to limit Russia's revenues from energy exports, thereby reducing its ability to finance the war in Ukraine, while maintaining stability in global energy markets.