Canada is at the forefront of a renewed allied push to squeeze Russia’s war chest, lowering the price cap on its crude oil in a coordinated move with the UK and EU. The action comes as President Trump prepares for a separate diplomatic track with Vladimir Putin.
In a joint statement, Canadian Finance Minister François-Philippe Champagne and Foreign Affairs Minister Anita Anand said the cap would be lowered to US$47.60 per barrel to “ratchet up the economic pressure” on Moscow. They emphasized that this limits a “crucial source of funding for Russia’s illegal war.”
This multilateral economic strategy is designed to weaken Russia’s position ahead of any negotiations. It stands alongside unilateral U.S. measures, such as tariffs on India, and Trump’s own threat of more sanctions if his August 15 deadline for peace is not met.
The allied pressure creates a complex environment for the Trump-Putin summit. While it gives Trump leverage, his hints at a bilateral deal involving territorial swaps have caused concern that he might undermine the united front and offer Putin an off-ramp that is seen as too generous by his partners.
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