Australia Lowers Price Cap on Russian Crude Oil
Summary
On February 24, 2026, Australia lowered the price cap on Russian-origin crude oil from USD47.60 to USD44.10 per barrel. This action impacts Australian individuals and companies providing maritime and financial services related to Russian oil.
What changed
Australia, through its Department of Foreign Affairs and Trade (DFAT), has announced a reduction in the Oil Price Cap (OPC) applicable to maritime services for Russian-origin crude oil. Effective February 24, 2026, the cap has been lowered from USD47.60 to USD44.10 per barrel. This measure, implemented via permits, restricts Australian entities from providing transport and financial services (including investment, financial advice, brokering, insurance, and derivatives) for Russian oil unless purchased by third countries below the new cap.
Australian individuals and companies involved in the provision of maritime transport or financial services related to Russian oil must now ensure compliance with the new USD44.10 per barrel cap for crude oil. Previously issued general permits authorizing OPC-related activities have expired. Entities seeking to continue these services must apply for a new permit through the Australian Sanctions Office's online portal, Pax. Failure to comply with these updated sanctions requirements may result in penalties under Australian sanctions laws.
What to do next
- Review updated price cap for Russian crude oil (USD44.10 per barrel).
- Contact Australian Sanctions Office via Pax portal to apply for a new permit if providing related maritime or financial services.
- Ensure all services comply with the new price cap requirements.
Penalties
Penalties may apply under Australian sanctions laws for non-compliance.
Archived snapshot
Mar 30, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Russia – Australia lowers price cap on Russian crude oil
24 February 2026
Category International relations On 24 February 2026 the Foreign Minister announced Australia had lowered the Oil Price Cap (OPC) applicable to maritime services provided in relation to Russian-origin crude oil from USD47.60 to USD44.10 per barrel.
Current sanctions
Australia implements a total ban on the importation of Russian-origin products (including oil, gas, refined petroleum products and coal) as defined in Chapter 27 of the Combined Australian Customs Tarriff Nomenclature and Statistical Classification. These goods are designated as import sanctioned goods in Schedule 1 of the Autonomous Sanctions (Import Sanctioned Goods – Russia) Designation 2022.
Under Australian sanctions laws:
- the importation, purchase or transport of import sanctioned goods, and
- the provision of financial assistance or financial services that assist with, or are provided in relation to the above are prohibited without a sanctions permit. Financial services subject to this prohibition include:
- investment services
- services providing financial advice
- brokering services
- insurance and reinsurance
- financial derivatives.
Implementation of the OPC
The OPC means Australian individuals and companies can only provide transport and financial services in relation to Russian-origin oil and refined petroleum products when those products are purchased by third countries below the relevant price caps. As at 24 February 2026, the applicable price caps are:
- USD44.1 per barrel for crude oil
- USD100 per barrel for high value refined petroleum products
- USD45 per barrel for low value refined petroleum products. The OPC is implemented domestically via permits. The general permits that previously authorised OPC related activities have now expired. If you are an Australian or Australian body corporate seeking to provide these services, please contact the Australian Sanctions Office (through our online portal, Pax) to apply for a permit or to request further information.
Further details of sanctions that Australia imposes against Russia are available on the Russia sanctions page.
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