**Canada Joins Allies in Lowering Russian Oil Price Cap**
In a move aimed at further pressuring Russia’s ongoing war in Ukraine, Canada has announced that it will join its allies in lowering the price cap on Russian oil. This decision comes as part of an effort to reduce Moscow’s energy revenue without disrupting global oil supplies.
**A New Dynamic Ceiling**
The new price ceiling, set at $47.60 per barrel, replaces a static limit of $60 per barrel introduced by the G7 in December 2022. The revised cap is designed to prevent Russia from selling its crude oil above this price, while still allowing EU and G7 companies to provide services such as insurance and shipping for Russian oil shipments.
**A Stepped-Up Economic Pressure**
“This further lowering of the price cap on Russian crude oil is a clear demonstration of Canada’s commitment to ratcheting up economic pressure on Russia,” said Canadian Finance Minister Francois-Philippe Champagne. “Our government has been a steadfast ally to Ukraine, and we will continue to support them in defending their territorial integrity, sovereignty, and peace for its people.”
**A Stronger Signal from the West**
The UK has already joined the EU in backing the revised cap, signaling a unified front against Russia’s actions in Ukraine. The Kremlin relies heavily on oil and gas revenues, which account for nearly one-third of federal income. By limiting this revenue stream, the West is seeking to weaken Moscow’s ability to fund its war efforts.
**A Call from Ukraine**
However, President Volodymyr Zelensky has urged his allies to go further, calling for a price cap of just $30 per barrel. “Each of the partners knows what price cap is needed — $30, no higher,” he said on June 10. “Such a price level will mean real pressure on Russia — they should be forced to seek peace.”
In conclusion, Canada’s decision to join its allies in lowering the Russian oil price cap marks a significant escalation in economic pressure on Moscow. While the exact impact of this move remains to be seen, it is clear that the West is determined to use all available tools to bring an end to Russia’s war in Ukraine.
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