Ottawa expands price caps to Russian petroleum products to reduce revenues

The federal Finance Department says Canada is becoming a member of its fellow G-7 international locations plus Australia to develop caps on Russian oil to incorporate seaborne petroleum merchandise from that nation.

The division says the utmost value for seaborne Russian-origin petroleum can be US $100 per barrel for “premium-to-crude” merchandise as of Sunday, and US $45 for “discount-to-crude” merchandise.

It says in a press launch the brand new caps construct on a Russian crude oil value restrict introduced in December, including each strikes will weaken President Vladimir Putin’s skill to fund the conflict in opposition to Ukraine.

The Department of Finance says the caps can be enforced by prohibiting patrons who don’t abide by the value caps from acquiring companies from firms within the G7 or Australia.

It says the value cap mechanism has been designed to cut back Russian revenues whereas recognizing the significance of secure vitality markets and minimizing unfavorable financial results.

Finance Minister Chrystia Freeland says Russian oil revenues have already declined for the reason that first value cap took impact and the extra value caps “will be another blow to Putin’s war chest.”

This report by The Canadian Press was first printed Feb. 4, 2023.

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This story was produced with the monetary help of the Meta and Canadian Press News Fellowship.