UK and EU lower Russian oil price cap to $47.6 per barrel

The UK, in coordination with the EU, has reduced the price cap on Russian crude oil from $60 to $47.6 per barrel to increase economic pressure on Moscow.

The United Kingdom has announced a reduction in the price cap on Russian crude oil, lowering it from $60 to $47.6 per barrel. The move, taken in coordination with the European Union, aims to further restrict Russia’s oil revenues and intensify economic pressure on Moscow.

According to a statement by the UK Foreign Office, the new cap directly targets a key source of income for Russia. The goal is to drive down the market value of Russian crude and cut into the country’s financial resources.

UK Chancellor of the Exchequer Rachel Reeves said the decision to lower the cap would help undermine Russia’s oil revenues while maintaining stability in global energy markets. “This step will increase pressure on Russia while protecting energy market stability,” she stated.

Foreign Secretary David Lammy added that the international community could not remain passive while "Putin continues to delay peace negotiations."

The EU also unveiled its latest sanctions package on the same day, confirming a shift in its own cap policy. The bloc announced a dynamic mechanism to set the price cap at 15% below the average market rate, which will now translate into the same $47.6 per barrel figure.

Both the UK and EU are tightening restrictions on Russian energy exports as part of a broader strategy to limit the Kremlin's capacity to fund its ongoing military operations.

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