Price cap
Also called russian oil price cap, oil price cap
The Russian oil price cap bans Western firms from providing shipping, insurance, finance and brokering for Russian seaborne oil sold above a set price. The Price Cap Coalition introduced it on 5 December 2022. The EU and UK cap on crude has stood at $44.10 per barrel since early 2026.
How it works
The cap works through services rather than a buying ban. A bank financing a cargo or an insurer covering a tanker must confirm the oil was bought at or below the cap. Firms collect attestations from counterparties, with more detail required the closer they sit to the trade. Breaches can lead to sanctions on the ship and its service providers.
The EU introduced a dynamic cap in July 2025 that sets crude 15% below the average market price of Russian crude. It cut the cap to $44.10 from 1 February 2026. A Council regulation adopted on 23 July 2026 froze that level and suspended automatic adjustments until July 2027. The UK matched the $44.10 crude cap from 31 January 2026.
The rules
Allows services for Russian seaborne crude only where the oil is sold at or below the price cap.
EU operators providing services for Russian seaborne crudeKept the crude cap at $44.10 per barrel by suspending automatic adjustment from 24 July 2026 to 14 July 2027, with an interim review by 15 January 2027.
EU operators providing services for Russian oilThe UK set its crude cap at $44.10 per barrel from 31 January 2026, aligned with the EU.
UK persons providing maritime transport and related servicesCommon questions
What is the current price cap on Russian crude?
The EU and UK cap stands at $44.10 per barrel. The EU set it from 1 February 2026 and the UK from 31 January 2026. In July 2026 the EU froze the level until July 2027, subject to an interim assessment by 15 January 2027.
How does the dynamic mechanism work?
Adopted by the EU on 18 July 2025, it sets the crude cap 15% below the average Urals market price over a 22-week reference period. The Commission reviews it every six months. A July 2026 regulation suspended the automatic adjustment from 24 July 2026 to 14 July 2027.
What is an attestation?
An attestation is a written confirmation that oil was bought at or below the cap. Service providers further from the trade, such as insurers, typically rely on attestations. Those with direct access to price data, such as traders, hold invoices and contracts.
Does the price cap apply to refined products?
Yes. Separate caps apply to Russian petroleum products, with one level for products trading at a premium to crude and another for those trading at a discount. They have applied since 5 February 2023.
