(OTTAWA) The Department of Finance announced on Saturday that Canada is joining other G7 countries and Australia in capping the purchase price of petroleum products of Russian origin transported by sea.
This measure is in addition to the cap on the price of crude oil, which was already in effect.
The ministry said that starting Sunday, the maximum price will be $100 a barrel for products more expensive than crude oil, such as gasoline and diesel. It will be $45 a barrel for products less expensive than crude oil, such as fuel oil.
The government said in a press release that these measures will weaken President Vladimir Putin’s ability to finance the war against Ukraine, while maintaining the stability of energy markets and minimizing negative economic effects.
Buyers who do not respect the maximum prices imposed by the coalition will be unable to obtain services from companies in the G7 or Australia, said Ottawa.
Finance Minister Chrystia Freeland said Russian oil revenues had already fallen since the first price cap came into effect and the measures announced on Saturday “will be another blow to Putin’s war financing”.
This article was produced with the financial support of the Meta Fellowships and The Canadian Press for News.