Following the EU’s 18th sanctions package and the latest developments of the UK’s sanctions against Russia, the Governments of Australia and Japan also introduced additional measures against Russia respectively on 18 and 12 September 2025. Among other measures, they have agreed with other G7 countries to phase out Russian oil imports in response to the 2022 invasion of Ukraine, indicating aligned efforts within the G7 with respect to the imposition of sanctions against Russia. This adjustment aligns with current global oil prices and is part of a broader effort to tighten sanctions compliance and reduce sanctions circumvention.
Japan Measures
- Lowering of the Oil Price Cap on Russian Oil. In an effort to align with current global oil prices and as part of a broader effort to strengthen sanctions compliance efforts and to reduce circumvention, Japan lowered its price cap on Russian crude oil to USD 47.60 per barrel from USD 60. As a result, the import of Russian crude oil at a price exceeding the cap is now prohibited. This new price cap was applied from 12 September 2025, with certain transitional measures. However, the impact of this measure is expected to be minimal, as transactions related to the Sakhalin project, a key source of Japan’s LNG supply, are exempt from the price cap rule.
- Additional Asset Freezes. The Japanese Ministry of Foreign Affairs announced that 47 Russian entities and nine individuals, as well as one entity and five individuals from eastern and southern regions of Ukraine considered directly involved in the “annexation” of the Autonomous Republic of Crimea and the City of Sevastopol, have been designated for asset freeze measures. Furthermore, three entities from countries other than Russia and Belarus have also been designated.
- Export Prohibitions. In addition, a prohibition on exports to two military-related entities in Russia and nine military-related entities in countries other than Russia and Belarus were introduced. These include three entities in China, two in Turkey, and one in the United Arab Emirates. This measure came into force on 19 September 2025.
Australia Measures
Similarly, in addition to the pre-existing prohibition of imports of oil and refined petroleum from Russia to Australia, the Australian government lowered the Russian Oil Price Cap to USD 47.60 per barrel.
Australia also imposed targeted sanctions against 95 additional shadow fleet vessels, bringing the total number of sanctioned vessels to over 150.
The EU’s 18th Sanctions Package and Proposals for the 19th Package
The measures introduced by Japan follow a similar move made by the EU in its 18th sanctions package, adopted on 18 July 2025, which lowered its price cap on Russian crude oil to USD 47.60 For more details on the EU’s 18th sanctions package, please refer to our earlier blog post here.
On 19 September, the EU also announced proposals for its 19th sanctions package against Russia, likely including an LNG import ban and new restrictions on refineries and oil traders, even in third countries.
UK Measures
On 18 July 2025, the UK Government had also announced a lowering of the oil price cap to further inhibit Russia’s ability to use oil revenues to finance its invasion of Ukraine. These changes broadly align with similar changes made by the EU in its 18th sanctions package, as described above. The key takeaways from the UK’s changes to the Russian oil price cap are as follows:
- From 2 September 2025, the UK reduced the oil price cap for Russian crude oil from USD 60 to USD 47.60 per barrel, aligning with EU measures.
- Contracts signed before 2 September under the old cap benefit from a 45-day wind-down period, ending 17 October 2025.
- Price caps for refined oil products remain unchanged at USD 100 for high-value products (e.g., diesel) and USD 45 for low-value products (e.g., fuel oil).
For more details on the UK reduction of the oil price cap please refer to our earlier blog post here.
In addition, the UK has recently expanded its sanctions to target further entities and vessels, including through the addition on 12 September of 30 entities and individuals identified as supplying key equipment such as electronics, chemicals and explosives to Russia, as well as a further 70 vessels, and the addition on 19 September of certain individuals and vessels linked to Georgia.
We will continue to monitor developments and remain available to discuss any specific questions you may have on this topic.
