The United Kingdom, acting in parallel with the European Union, has lowered the oil price cap on seaborne Russian crude to $44.10 per barrel, down from $47.60. The revised cap takes effect at 23:01 (GMT) on Saturday, January 31, 2026.
The United States did not participate in the adjustment. The United States has not adjusted this level since the cap was established in December 2022 and continues to apply $60 per barrel for purposes of U.S. sanctions compliance, even as the UK and EU have lowered their own caps. A recent quote for Urals crude was $55.85 per barrel, meaning the US sanction is toothless.
UK authorities said the move is intended to maintain regulatory alignment with the EU while further constraining Russian oil revenues supporting Moscow’s war against Ukraine.
The lower cap applies to all services covered by the oil price cap regime, including maritime transportation and the direct or indirect provision of brokering services, financial services, or funds related to the seaborne transport of Russian crude from Russia to third countries or between third countries.
To allow market adjustment, the UK provided a wind-down period. Trades with an effective contract date before 23:01 (GMT) on January 31, 2026, and compliant with the prior $47.60 cap, may proceed until 22:59 (BST) on Thursday, April 16. After that point, the $44.10 cap applies.
The UK’s Office of Financial Sanctions Implementation updated FAQs 154–161 to support implementation during the transition. Market participants must continue to comply with reporting and attestation requirements under the Oil Price Cap General Licence.
To read OFSI's FAQs, click here
For the updated Oil Price Cap general licence, click here
For OFSI’s full Oil Price Cap guidance, click here
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