Sanctions Architecture
EU/G7 Price Cap on Russian Oil
Following Russia's 2022 invasion of Ukraine, the G7, EU, and Australia introduced a price cap mechanism (effective December 2022) barring Western shipping, insurance, and financial services from handling Russian crude sold above a set price, aiming to curb Russian oil revenue without removing Russian barrels from the global market (which could spike prices). A parallel cap was later set for refined petroleum products.
- Original G7/EU crude oil price cap (December 2022): USD 60 per barrel.
- The cap has been progressively tightened; by 2025 the EU lowered the crude price cap to around USD 47.6 per barrel to reflect falling global oil prices and increase pressure on Russian revenues.
- Separately, the EU has moved to close a "refining loophole" by restricting imports into the EU of petroleum products refined from Russian crude in third countries (like India), since such products were not directly of Russian origin and had previously escaped the cap.
- This is a coalition-based sanctions regime (G7 plus allies), distinct from UN Security Council sanctions, which require Security Council resolutions and are not in place against Russia due to its veto power as a permanent member.
● Tracked since March 07, 2026 · last seen September 13, 2026 · updates as the daily brief publishes
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