Australia Cuts Russian Oil Price Cap, Expands Sanctions on ‘Shadow Fleet’
Australia has lowered the price cap on Russian oil and extended sanctions against Moscow’s “shadow fleet” in a fresh move to curb funding for Vladimir Putin’s war economy.
Foreign Minister Penny Wong announced on Thursday that the cap would be reduced from USD 60 per barrel to USD 47.60, aiming to shrink the market value of Russian crude and reduce oil revenues sustaining the invasion of Ukraine.
“The Australian Government is lowering the Russian oil price cap and imposing targeted sanctions on 95 additional shadow fleet vessels,” Senator Wong said. “This action will help starve Russia’s war economy of oil revenue.”
The measures, coordinated with partners including the EU, UK, Canada, New Zealand, and Japan, come alongside Australia’s existing total ban on Russian oil and refined petroleum imports.
The newly sanctioned vessels are part of Russia’s covert shipping network, which employs tactics such as flag-hopping, disabling tracking systems, and operating without adequate insurance to bypass sanctions and continue illicit oil trading. These practices also pose serious environmental and maritime risks.
Since first targeting shadow fleet vessels in June 2025, the Albanese Government has now sanctioned more than 150 ships. Overall, Australia has imposed over 1,600 sanctions in response to Russia’s invasion of Ukraine.
“Australia will continue coordinated, decisive action with international partners to restrict Russia’s oil revenues and disrupt its ability to finance the war,” Wong emphasized.
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