EU lowers price ceiling for Russian oil to $44.1 per barrel from February 1

Any sea transportation of Russian oil involving European services will be legal only if the contract price does not exceed the new threshold.

The European Union has published an update to its sanctions regime, according to which, from February 1, the maximum price for Russian crude oil will be reduced to $44.1 per barrel.

The new level replaces the previous limit of $47.6, set from September 3, 2025. Regulators are keeping the mechanism itself unchanged: insurance clubs, banks, carriers and other intermediaries are primarily responsible, who must check and document the compliance of agreements with the price ceiling. Violations entail financial and sanction consequences for both shipowners and cargo owners.

Now, in order to maintain access to insurance and port infrastructure, the Russians will have to either increase discounts or use more expensive “gray-black” routes with increased risks and costs.

For buyers, this increases transaction risks and compliance requirements, and for shipping, it is an incentive to return to transparent schemes through European insurers only within the new threshold.

Recall that the price ceiling for Russian oil has been in effect in the EU since December 2022 as a tool to limit Russia’s export revenues and war financing, and the EU periodically adjusts its parameters. Since September 2025, the limit was lowered to $47.6. Now it has been cut to $44.1.

Also, the day before, USM reported that Britain may sell oil from Russia’s “shadow fleet” to finance Ukraine.