EU Cuts Russian Oil Price Cap to $44.10 per Barrel—What Does This Mean for Moscow’s Revenues?

The European Union will lower the price cap on Russian crude oil to $44.10 per barrel starting February 1, tightening restrictions on Moscow’s energy revenues, according to the European Council, as cited by Babel on January 15.

Under the revised rules, EU companies will be barred from providing transport, insurance, financing, or other services for oil shipments sold above the new cap.

The price limit will be reviewed several times a year and calculated as the three-month average market price minus 15%, the Council said.

The move further narrows Russia’s options for exporting crude. To continue sales, Moscow will either have to cut prices or rely more heavily on its so-called shadow fleet—aging tankers or vessels registered in jurisdictions such as Panama or Liberia that operate outside Western controls, Babel wrote.

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War in Ukraine

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The new cap builds on earlier measures introduced after Russia’s full-scale invasion of Ukraine. In December 2022, the G7, Australia, and the EU set a $60-per-barrel ceiling on Russian oil, followed in February 2023 by separate limits on refined products, including $100 for diesel and $45 for lubricants.

By September 2025, the maximum permitted price for Russian crude had already fallen to $47.60 per barrel, Babel reported.

Previously, Ukrainian President Volodymyr Zelenskyy said coordinated international pressure on Russia’s so-called shadow fleet of sanctioned oil tankers has already forced at least 20% of its vessels to halt operations, marking a significant blow to Moscow’s ability to export oil and finance the war.

Zelenskyy said the assessment was presented during a briefing by Oleh Luhovskyi, first deputy head of Ukraine’s Foreign Intelligence Service.

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