U.S. Preventing the Lowering of Russian Oil Price Cap, Shielding Kremlin Revenue Amid War
As Ukraine’s Western allies tighten the economic noose around Moscow, the United States has moved to block efforts by European G7 partners to lower the $60 per barrel cap on Russian oil exports—effectively preserving a key revenue stream for Vladimir Putin’s war machine.
Bloomberg is reporting that the Trump administration is resisting proposals from several European countries to cut the cap, which was set in December 2022 as part of a coordinated attempt to restrict the Kremlin’s ability to fund its invasion of Ukraine. Despite mounting evidence that Russia has been circumventing the cap through a fleet of shadow tankers and murky financial arrangements, Washington has maintained that the current limit remains adequate.
But critics warn that this refusal to act is enabling the Kremlin to sustain its military operations, even as Russian missiles continue to target Ukrainian civilians, cities and energy infrastructure.
Notably, the U.S. position comes just weeks after Republican lawmakers, under pressure from former President Donald Trump’s allies, successfully stalled a major sanctions package in Congress that would have targeted Russia’s remaining export loopholes—ranging from liquefied natural gas to dual-use technology flowing through third countries. Several proposals, including the REPO Act, which would have authorized the seizure of frozen Russian state assets, have been effectively shelved in the House of Representatives.
Observers say the cumulative effect of these moves—both on Capitol Hill and in the G7—suggests a broader reluctance within key parts of the U.S. political establishment to inflict decisive damage on the Russian economy. Some European officials now quietly speculate that Trump’s growing influence over Republican leadership is already affecting U.S. foreign policy—and not in Kyiv’s favor.
“Whether by blocking aid in Congress or resisting tougher sanctions internationally, the pattern is unmistakable,” said Edward Fishman, a former U.S. State Department sanctions official. “The pressure is coming off Putin when it should be increasing.”
The reluctance to lower the cap also contradicts Ukrainian intelligence assessments. According to Kyiv’s National Agency on Corruption Prevention, Russia is now selling oil well above the cap in major markets, including India, using disguised shipments and Gulf-based intermediaries. The longer the loopholes remain, Ukrainian officials say, the more time Russia has to rearm.
Meanwhile, the optics are stark. Just days after Russian airstrikes killed civilians in Kharkiv and Odesa, G7 leaders met in Italy to reaffirm their “long-term commitment” to Ukraine. But on the economic front, Washington appears unwilling to act on one of the few levers that directly targets the Kremlin’s ability to wage war.
For many in Kyiv, the message is clear: the West still fears harming Putin more than it fears Russia’s constantly expanding global terror binge.
