The UK and the European Union have lowered the price threshold for Russian crude oil from $60 to $47.60 per barrel, striking a new blow to Putin's oil revenues that fuel the Russian war machine in Ukraine.
British government representatives announced this on July 18, 2025, at the G20 summit in South Africa. This new measure aims to reduce the market value of Russian oil and disrupt the flow of oil money into the Kremlin's military budget.
The price cap on petroleum products remains unchanged: $100 for high-quality products such as diesel and gasoline, and $45 for low-quality products, including fuel oil. The price cap system implemented in December 2022 prohibits G7 companies from transporting, insuring, or otherwise servicing Russian oil sold at prices above the established limit.
Energy revenues account for about 30% of Russia's total federal revenue, which finances the Russian war machine. The UK has already sanctioned more than 250 vessels responsible for transporting Russian energy and is committed to providing Ukraine with £3 billion in military support per year.
It has been reported that the UK and the European Union have lowered the price of Russian oil, which could pose new challenges for the Russian military budget funded by energy revenues. It is known that these restrictions apply only to certain types of oil products, but the overall strategy is aimed at weakening Russia's influence in the region.