European Union countries agreed on Friday to a 60-dollar-per-barrel cap on seaborne trade in Russian oil.
The measure, which is part of the economic war against Russia for its special military operation in Ukraine, will come into force on December 5, according to a statement by the Group of Seven (G7).
The consensus reached by the G7, the European Union (EU) and Australia came after several days of intense discussion by EU countries. The European Commission acted as an intermediary between the bloc and the G7.
The EU's veto on Russian oil, which prohibits "the purchase, import or transfer of crude oil and certain petroleum products from Russia to the EU," is scheduled to come into force on December 5.
As for oil derivatives, the restrictions will take effect from February 5, 2023. "We will announce price limits for oil derivatives of Russian origin at a later date," the G7 said.
A periodic review of the cap is planned, to keep it at least 5 percent below the Russian selling price and in line with market trends.
European Commission President Ursula von der Leyen welcomed the cap claiming that it will "further decrease Russia's revenues" and "stabilize world energy markets."
Russia, for its part, has warned that it will not sell its oil to countries that impose price caps. "We will not supply oil and gas to countries that set and add to the cap," Kremlin spokesman Dmitry Peskov has said.