By Anjali Sharma
WASHINGTON – Australia Foreign Minister Penny Wong announced on Thursday that Australia would lower the oil price cap imposed on Russia’s so-called black gold from USD 60 per barrel to USD 47.60.
Australia has driven down the price of Russian oil and imposed further sanctions on the Kremlin’s “shadow fleet”, vessels secretly selling it, in a bid to help “starve” Vladimir Putin’s war economy of oil revenue.
“The Australian Government is lowering the Russian Oil Price Cap and imposing targeted sanctions on a further 95 Russian ‘shadow fleet’ vessels. The action to lower the oil price cap from USD 60 a barrel to USD 47.60 will drive down the market value of Russian crude oil and help starve the Russian war economy of oil revenue,” Senator Wong said in a statement.
She said that the action has been taken in coordination with other Western allies to further restrict Russia’s ability to finance its ongoing invasion of Ukraine.
“Australia has taken this action alongside our international partners, including the European Union, the United Kingdom, Canada, New Zealand, and Japan,” she said.
Australia continues to uphold a total ban on imports of Russian oil and refined petroleum.
Wong also confirmed that Canberra had imposed targeted sanctions on an additional 95 Russian ‘shadow fleet’ vessels. These ships are used to circumvent international sanctions and prop up Russia’s war economy. They pose serious environmental and maritime safety risks, operating under deceptive practices including flag-hopping, disabling tracking systems, and operating with inadequate insurance, to enable the illicit trade of Russian oil and other sanctioned goods.
“With these additional listings, the Albanese Government has now sanctioned more than 150 shadow fleet vessels since doing so for the first time in June 2025,” Senator Wong said.
The Russian government relies on its shadow fleet to illegally trade goods amid mounting political and economic isolation due to its years-long war in Ukraine.
Australia has imposed over 1,600 sanctions in response to Russia’s full-scale invasion of Ukraine, which supports Ukraine in defending its sovereignty and territorial integrity.
“We will continue to take coordinated and decisive action to disrupt Russia’s ability to fund its invasion, including through constraining its oil revenues,” the statement added.
