G7 plans dual price caps on oil products from Russia, part of the EU advocates for tariffs
A coalition of countries, including the USA, Canada, Japan, Australia, and all 27 member states of the European Union, has been implementing a price cap on Russian crude oil for over two years — no higher than $60 per barrel. This decision was made back in December 2022 and was accompanied by an embargo on maritime oil supplies to the EU.
This is reported by AgroReview
G7 considers introducing dual limits on oil products
Starting from February 2026, the coalition intends to impose price caps on Russian oil products, including diesel fuel, kerosene, and fuel oil. However, setting limits for finished oil products is a more complex task than for crude oil, as the market for such goods is diverse, and prices often depend on the region of sale.
G7 proposes to divide the price caps into two categories:
- A limit for products sold at a premium to crude oil (e.g., diesel and kerosene).
- A limit on goods sold at a lower price than crude oil (specifically, fuel oil).
“The goal is to deprive Moscow of revenue while avoiding destabilization of the global energy market and price increases for consumers.”
This issue is particularly pressing for European countries that still rely on imports of Russian diesel fuel. In October 2025, nearly half of all diesel entering Europe was of Russian origin.
Russia’s oil and gas revenues continue to decline
As of the end of October 2025, Russia’s state budget received 21.4% less from oil and gas sales compared to the same period last year. The decrease amounted to 2 trillion rubles, with total revenues reaching 7.5 trillion rubles (or $92.4 billion). In October of this year, oil and gas revenues fell by 27% compared to October 2024, totaling 888.6 billion rubles.
Against this backdrop, seven EU countries — Estonia, Finland, Germany, Latvia, Lithuania, Poland, and Sweden — have urged the European Commission to impose additional tariffs on imports from Russia. This includes tariffs on iron and steel products, inorganic chemicals, and potassium fertilizers. Last year, the export of these goods brought Russia approximately €5.4 billion in revenue, significantly aiding in financing its aggression against Ukraine.