Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with her G7 counterparts on (a) the potential impact of the oil price cap on the level of the Russian Federation's revenues to date and (b) the potential merits of reducing the level of the oil price cap; and what estimate she has made of the potential impact of the oil price cap on the Russian Federation's fiscal revenues in each of the last three years.

The implementation of the oil price cap has achieved its joint aims of 1) reducing Russian oil revenues by capping the price at which Russian oil can be transported using G7 maritime services (such as insurance and brokering for example), while also, 2) maintaining global oil flows and limiting market in instability.

This is why the UK, alongside the EU announced our intention to lower the crude oil price cap in July 2025 with Canada, Japan and New Zealand following shortly afterwards.

At 23:01 (GMT) Saturday 31 January 2026 the crude Oil Price Cap will be lowered from $47.60 to $44.10 per barrel. The UK has chosen to mirror the EU's new price to maintain regulatory alignment in targeting Russian revenues and is part of the UK’s ongoing commitment to supporting Ukraine. Remaining aligned with the EU on this matter ensures clarity and ease for UK businesses operating in Europe.

Following the introduction of the oil price cap on crude oil in December 2022, and refined oil products in February 2023, Russian oil export revenues have been significantly reduced. Compared to 2022, the price cap contributed to an approximately 18% fall in Russian oil export revenues in 2023 and 2024, and a 30% decline in 2025. This success, coupled with significantly lower Urals prices, has weakened Putin’s ability to sustain his illegal war in Ukraine.