The Group of Seven (G7) nations and Australia on Friday said they had agreed a $60 per barrel price cap on Russian seaborne crude oil after European Union (EU) members overcame resistance from Poland and hammered out a political agreement earlier in the day, Reuters reported.
The EU agreed the price after holdout Poland gave its support, paving the way for formal approval over the weekend.
The G7 and Australia said in a statement the price cap would take effect on December 5, or very soon thereafter.
The nations said they anticipated that any revision of the price would include a form of grandfathering to allow compliant transactions concluded before the change.
"The Price Cap Coalition may also consider further action to ensure the effectiveness of the price cap," the statement read.
The price cap, a G7 idea, aims to reduce Russia's income from selling oil, while preventing a spike in global oil prices after an EU embargo on Russian crude takes effect on December 5.