Oil Price Cap Reduced to USD 44.10 per Barrel

The UK and EU have announced a further reduction in the price cap on Russian crude oil, lowering the maximum permitted price from USD 47.60 to USD 44.10 per barrel. This reduction reflects the first application of a dynamic pricing mechanism, designed to keep the cap approximately 15 per cent below prevailing market prices for Urals crude.

The revised cap will apply from 1 February 2026, subject to limited transitional provisions for existing contracts. The wind down period is 90 days from the cap amendment (15 January) with an effective end date of 16 April 2026.

The measure applies to the provision of maritime transport, insurance, reinsurance, financing and other associated services linked to the seaborne transport of Russian crude oil.

Further guidance can be found here: EU  UK

 

EU Russian Origin Product Export Ban Effective 21 January 2026

As agreed in the 18th EU Sanctions Package against Russia adopted in July 2025, from 21 January 2026, an export and services ban will enter into force covering petroleum products produced outside the EU using Russian-origin crude oil.

The measure prohibits EU operators from purchasing, importing, transferring or providing related services—including insurance and financial services—for such products, unless strict origin and compliance requirements are met.

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