Group of Seven nations aim to announce at what level they will set a price cap on Russian crude oil on Wednesday, according to people familiar with the matter, Bloomberg reported.

The Biden administration is expected to privately share a proposed price ahead of a meeting of European Union ambassadors scheduled for Wednesday, the people said, speaking on condition of anonymity to discuss internal deliberations.

If the EU ambassadors support this proposal, it is planned to announce the cap the same evening—but the timeframes may change.

The cap, backed by the G-7 and the EU, would ban companies from providing shipping services and services such as insurance, brokerage, and financial support needed to transport Russian oil anywhere in the world—except when the oil is sold at a price below the agreed upon level.

The plan is due to come into force after December 5. But the US and UK have said their companies will be given a grace period until January 19 taking into account the cargo whose loading took place before the restrictions came into force. The EU has not yet addressed the implementation of the provision.

The allies had previously discussed setting a price cap of between $40 and $60 a barrel, which ranges from the cost of production in Russia to pre-war levels, but two sources said it could be higher. The cap aims to keep Russian oil on the market to avoid rising prices while reducing Moscow's revenues.

This year, most of the G-7 countries and the EU will stop importing Russian oil. Regulations on petroleum products, including those price caps, are due to take effect early next year.