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EU Lowers Russian Oil Price Cap to $44.10 Effective Feb. 1

The move applies the automatic formula created in the EU’s 18th sanctions package to further curb Russia’s oil revenue.

Overview

  • The change was published in the EU’s official journal on January 15, 2026.
  • Contracts concluded before February 1 can be executed under the prior $47.6 cap until April 16, 2026.
  • EU documents say the transition window is necessary to ensure consistent implementation by market operators.
  • The price-cap regime began on December 5, 2022 with a $60 per barrel limit on Russian seaborne oil.
  • The EU’s 18th sanctions package on July 18, 2025 reduced the cap to $47.6 and established an automatic, dynamic mechanism for future adjustments.