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A few days late, eh? Canada’s announcement of Russian oil price cap

Canada and G7-plus partners impose price cap on Russian crude oil

December 9, 2022 – Ottawa, Ontario – Global Affairs Canada

The Honourable Mélanie Joly, Minister of Foreign Affairs, today announced that Canada is imposing further measures in response to the Russian regime’s illegal invasion and attempted annexation of Ukrainian territory.

As winter approaches and the cold sets in, people around the world—particularly those in low or middle income countries—are focused on fulfilling their most basic needs, like heating their homes. The Russian regime is taking advantage of its position as a large energy exporter to exploit this demand and use the profits to fund its war campaign in Ukraine.

This is why Canada, along with its G7 partners and Australia, is imposing a price cap of US$60 per barrel on Russian-origin crude oil. Effective December 7, should the price per barrel exceed this cap, anyone in Canada or any Canadian internationally is prohibited from providing select services related to the maritime transport of Russian crude oil. Canada’s ban on imports of Russian oil remains in effect.

These measures aim to restrict the flow of petrodollars to the Kremlin while addressing the immediate energy needs of affected countries.

Canada and its international partners will continue to collaborate to exert additional pressure on the Russian regime.

Quote

“President Putin’s war in Ukraine shook the world, with every country feeling its effects. We will always support those caught in the Russian regime’s warpath. We continue to seek solutions that address the immediate needs of the most vulnerable while maximizing our pressure on Putin and his accomplices. Canada stands with Ukraine.”

Mélanie Joly, Minister of Foreign Affairs

Quick facts

  • This announcement delivers on a commitment made by G7 leaders at their June 2022 Summit in Elmau, Germany, to prevent Russia from profiting from its war of aggression by phasing out dependency on Russian energy and introducing price caps to restrict the flow of oil revenues into Russia’s war chest.
  • According to the International Energy Agency, oil and gas revenues made up about 45% of Russia’s federal budget revenues in 2021.
  • Canada is a net exporter of crude oil, meaning it exports more than it imports each year. Canada does not import crude oil from Russia.
  • The Government of Canada has already disbursed $2 billion in direct financial assistance to Ukraine so far in 2022 and committed an additional $500 million through the Ukraine Sovereignty Bond. Canada has also committed more than $2.5 billion in military, humanitarian and other assistance to Ukraine this year, which brings Canada’s commitments to Ukraine to more than $5 billion.
  • Since Russia’s illegal occupation and attempted annexation of Crimea in 2014, Canada has imposed sanctions on more than 2,100 individuals and entities. Many of these sanctions have been undertaken in coordination with Canada’s allies and partners.
  • Since Russia’s further invasion of Ukraine on February 24, 2022, Canada has imposed sanctions on more than 1,500 additional individuals and entities from and in Russia, Ukraine and Belarus.

Categories: Global Affairs Canada updates Oil Price Cap Russia sanctions Special Economic Measures Act Regulations updates

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