Norway lowers price cap on Russian oil following EU decision

Norway has decided to lower the price cap on Russian oil as part of sanctions against Russia.

According to Report, citing a statement from the Norwegian Ministry of Foreign Affairs, this step aligns with the European Union"s decision, which on September 3 reduced the price cap on Russian oil. The new level now applies both in EU countries and in Norway.

Norwegian Foreign Minister Espen Barth Eide emphasized that oil exports still account for one-third of Russia"s budget revenues.

"Reduced revenues and increasing pressure on the Russian economy make it harder for the Russian authorities to conduct their illegal war in Ukraine. It is important for Norway to take measures together with our allies that can contribute to this," he noted.

The reduction of the price cap brings it closer to the production cost of oil, which, according to the authorities, lowers Russia"s export revenues and limits its ability to finance its military economy.

Under the new rules, the maximum price for Russian crude oil has been reduced from $60 to $47.6 per barrel.