In response to the war in Ukraine, the EU and G7 set a price cap of $60 per barrel on Russian oil to reduce Russia’s export revenue. The EU also plans to end all Russian oil imports by 2027, requiring member states to shift to alternative suppliers. While some have proposed lowering the price cap further, to around $50 per barrel, any change would require full EU agreement and alignment with the US – a challenge that could be complicated to enforce. 

Tonne-mile demand may benefit from import ban
For tanker owners, such as EMF, evolving trade patterns linked to sanctions and the EU’s planned Russian oil phase-out could create favourable voyage opportunities and increase tonne-mile demand. These shifts have the potential to tighten vessel supply and support higher freight rates over time, if voted into action.