(MENAFN) The United Kingdom and European Union on Friday jointly declared a major cut in the price ceiling for Russian crude oil exports, aiming to strike at "targeting Putin's critical oil revenues."

This ceiling has dropped from $60 to $47.60 per barrel, taking direct aim at Russia’s energy income, which has already fallen 35% year-over-year as of May, according to the UK government.

Chancellor of the Exchequer Rachel Reeves, while addressing the G20 summit in South Africa, explained that the action was meant to impose “decisive” economic strain on Moscow.

“The UK and its EU allies are turning the screw on the Kremlin’s war chest by stemming the most valuable funding stream of its illegal war in Ukraine even further,” she said.

“This decisive step to lower the crude oil price cap will target Russia’s oil revenues and ramp up the pressure on Putin by exploiting his biggest vulnerability – while keeping energy markets stable.”

The UK government emphasized that the aim of the policy is to “clamp down on Putin's oil industry,” disrupting the international market worth of Russian oil.

Foreign Secretary David Lammy added: “As Putin continues to stall on serious peace talks, we will not stand by.

“That's why we're striking at the heart of the Russian energy sector alongside the EU. Together we will continue to apply relentless pressure on Putin, squeezing his critical oil industry and cutting off funding for his illegal war in Ukraine."

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