Australia has intensified its international efforts to curtail Russia's financial capacity to fund its ongoing conflict in Ukraine by lowering the price cap on Russian crude oil and imposing new sanctions on its "shadow fleet" of vessels.
Effective September 18, 2025, the Australian government has reduced the price cap for Russian crude oil from $60 to $47.60 per barrel. This adjustment aligns Australia with key international partners, including the European Union, the United Kingdom, Canada, New Zealand, and Japan, in a coordinated strategy to decrease the global market value of Russian crude oil and subsequently diminish revenue for Russia's war economy. Foreign Minister Penny Wong stated that this measure is designed to "starve the Russian war economy of oil revenue" and reiterated Australia's commitment to coordinated international action.
In parallel with the price cap adjustment, Australia has also expanded its targeted sanctions by imposing measures against an additional 95 Russian "shadow fleet" vessels. This brings the total number of sanctioned vessels to over 150 since the initial sanctions were implemented in June 2025. These "shadow fleet" vessels are utilized by Russia to circumvent international sanctions and sustain its war efforts through deceptive practices, such as flag-hopping and disabling tracking systems.
The Australian government has now imposed a total of over 1,600 sanctions in response to Russia's invasion of Ukraine, underscoring a commitment to disrupting the financial underpinnings of the conflict. Ukraine's Minister of Foreign Affairs, Andrii Sybiha, expressed gratitude to Australia for its decisive support and adherence to international law.
The strategic lowering of the oil price cap follows the G7's original establishment of the mechanism in December 2022, aimed at curbing Russia's oil sales without causing undue disruption to global energy markets. The effectiveness of these ongoing sanctions is subject to continuous observation as Russia adapts its strategies.
The international community remains vigilant in its support for Ukraine and its commitment to holding Russia accountable for its actions. The coordinated approach signifies a unified global stance aimed at curtailing the financial resources fueling the conflict and reinforcing the principles of sovereignty and territorial integrity.