NextFin news, On Thursday, September 18, 2025, the Australian government announced it is lowering the price cap on Russian crude oil from $60 to $47.60 per barrel and imposing targeted sanctions on 95 vessels belonging to Russia's so-called "shadow fleet."
The measures aim to reduce Russia's oil revenue, which funds its war economy, by driving down the market value of its crude oil. The shadow fleet consists of aging, often uninsured tankers used by Russia to bypass international restrictions, sell oil below the price cap, and conduct espionage activities.
Australia's Foreign Minister Penny Wong stated, "This step will drive down the market value of Russian crude oil and help starve the Russian war economy of oil revenue. We will continue to take coordinated and decisive action to disrupt Russia’s ability to fund its invasion."
The Australian Ministry of Foreign Affairs confirmed that these actions align with similar moves by international partners including the European Union, United Kingdom, Canada, Japan, and New Zealand. Australia maintains a total ban on imports of Russian oil and refined petroleum products.
With the latest sanctions, Australia has designated over 150 shadow fleet vessels since June 2025 and imposed approximately 1,600 sanctions in response to Russia's full-scale invasion of Ukraine. The government reiterated its call for Russia to immediately end the war and withdraw from Ukrainian territory, emphasizing support for a comprehensive, just, and lasting peace in Ukraine.
The price cap mechanism was first introduced by the G7 in December 2022 to limit Moscow’s oil revenues while minimizing disruptions to the global oil market. The shadow fleet has been a key tool for Russia to circumvent these restrictions.
These developments come amid ongoing international efforts to increase pressure on Russia to cease hostilities in Ukraine, with Kyiv urging partners to intensify sanctions and restrictions.
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