The Honourable François-Philippe Champagne, Minister of Finance and National Revenue, and the Honourable Anita Anand, Minister of Foreign Affairs, on August 8 announced that Canada intends to lower the price cap for seaborne Russian-origin crude oil from US$60 to US$47.60 per barrel, the Government of Canada said on its official website.
This price cap mechanism has been tactfully designed, while recognizing the supply chain limitations of global energy markets and minimizing negative economic spillovers. The mechanism allows for adjustments so that the price cap could be further reduced in the future.
The price cap on seaborne Russian-origin crude oil was first implemented on December 2, 2022. The price caps of US$100 on high-value refined oil products, such as diesel and petrol, and US$45 on low-value refined oil products, such as fuel oil, remain unaffected. Canada’s ban (March 10, 2022) on direct imports of Russian oil remains in effect.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Government of Canada
