Canada joins allies in lowering price cap on Russian oil

The Canadian government said on Friday it will join some of its closest allies in lowering the price cap for Russian oil over its continued war in Ukraine, the country’s finance department said in a statement, according to Reuters.

Canada will lower the price cap for seaborne Russian-origin crude oil to $47.60 from $60 per barrel, the statement said.

The price cap move brings Canada in line with the European Union and the United Kingdom, who announced in July they would lower the cap as they target Russia’s oil revenues and ramp up pressure on Moscow over the war.

“By further lowering the price cap on Russian crude oil, Canada and its partners are ratcheting up the economic pressure and limiting a crucial source of funding for Russia’s illegal war,” Finance Minister Francois-Philippe Champagne said.