Today, the UK, alongside the EU, has announced that the Oil Price Cap on seaborne Russian Crude Oil will be lowered from $47.60 to $44.10 per barrel. The lowered Oil Price Cap of $44.10 per barrel comes into effect at 23:01 (GMT), Saturday, 31 January 2026. 

This action will maintain regulatory alignment in targeting Russian revenues and is part of the UK’s ongoing commitment to supporting Ukraine in its struggle against Russia’s illegal war of aggression. 

This will apply to all services captured by the Oil Price Cap, including maritime transportation and the provision, directly, or indirectly, of brokering services or financial services or funds, related to the maritime transport of Russian crude from a place in Russia to third countries or from one third country to another.  

For any trades with an effective date of contract before 23:01 (GMT), Saturday, 31 January 2026 and which are compliant with the existing price cap of $47.60 per barrel, there will be a wind-down ending at 22.59 (BST), Thursday, 16 April.  After the wind-down, the lower price cap of $44.10 per barrel takes effect. This measure is necessary to give UK businesses the required time to adjust and ensure the consistent implementation of the price cap by all operators.  

OFSI has updated FAQs 154-161 today to support industry in adapting to the lower price cap over the wind-down period. Market participants must comply with the usual reporting and attestation requirements imposed by 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