1. Revised Price Cap:
   • The new cap of US$44.10 per barrel is in effect from 1 February 2026.
   • Contracts concluded before 31 January 2026, with Russian oil offloaded at the port of destination by 16 April 2026, will remain subject to the previous cap of US$47.60 per barrel.
2. UK General Licence amendment:
   • The UK’s General Licence INT/2024/4423849, known as the ‘oil price cap’ licence, has been updated to reflect the new cap.
   • The Office of Financial Sanctions Implementation (OFSI) has amended FAQs 154-161 and its industry guidance to align with these changes.
3. Compliance requirements:
   • Operators must ensure oil is purchased at or below the cap.
   • Mandatory attestations and itemised cost documentation for transactions involving Russian oil will apply from February 2024.
   • EU operators are required to retain records for five years to demonstrate compliance.
4. Scope of application:
   • The cap applies to Russian seaborne crude oil and petroleum products.
   • Exemptions exist for specific projects critical to energy security, such as the Sakhalin-2 project, valid until 28 June 2026.
5. Enforcement:
   • National authorities will oversee compliance and address violations.
   • Red flags for circumvention include refusal to provide cost details or falsified attestations.

This coordinated effort by the EU and UK underscores their commitment to enforcing sanctions while mitigating disruptions to global energy markets.

European Union’s publications can be found here, here and here.

OFSI's FAQs can be accessed here. The updated Oil Price Cap General Licence is here and the OFSI’s full Oil Price Cap guidance, click here.