EU prepares to launch new price cap for Russian oil

Instead of a fixed limit, as before, a flexible mechanism tied to the market will operate.

From September 3, 2025, the European Union will begin to apply a new dynamic formula for limiting the price of oil from Russia. This was announced by European Commission spokeswoman Arianna Podesta, writes “European Pravda”.

the new approach will allow the “ceiling” to be automatically updated depending on the average oil price for the last three months. Currently, according to the new formula, the maximum allowable price for Russian oil will be about $47.6 per barrel – this is 15% less than the average market figure.

The mechanism is provided for in the 18th package of EU sanctions against Russia, which was adopted after lengthy negotiations, in particular due to the opposition of Slovakia and Malta. The main provisions of the package entered into force in July, but dynamic pricing will come into force from September to give the market time to adapt.

Also, on August 8, another important provision of the sanctions package will come into effect – a ban on financial transactions with 22 additional Russian banks.

Ukraine has already submitted its proposals for the 19th package of sanctions to Brussels, including further restrictions on Russian energy and high-tech components.

Also, the day before, USM wrote that the White House is preparing a new wave of sanctions against ships that help the Kremlin circumvent the oil embargo.