G7, Australia agree to cap Russian oil price

The G 7 and Australia agreed to cap the price for Russian crude oil at $60 a barrel hours after EU members overcame internal resistance to reach the same decision earlier in the day.

The EU agreed the price after Poland gave its support, paving the way for formal approval over the weekend.

The Group of Seven leading economies and Australia said the price cap would take effect on 5 December or very soon after.

The price cap is intended to reduce Russia's income from selling oil, while preventing a spike in global oil prices after an EU embargo on Russian crude oil takes effect on 5 December.

Poland had pushed for the cap to be as low as possible in EU negotiations in order to squeeze Russian revenues and limit Moscow's ability to finance its war in Ukraine.

The final deal has a mechanism to keep the oil price cap at least 5% below the market rate.

The deal showed the resolve of the coalition opposing Russia's war, according to US officials.

The European Commission President, Ursula von der Leyen, said that the price cap would reduce Russia's revenues.