The agreement, which was reached late on Dec. 2, follows a decision by the EU to set a $60 per barrel price cap for Russian seaborne crude oil.
An embargo on Russian seaborne oil approved by the EU in June will take effect on Dec. 5, while the US, UK, Canada, and Australia have already banned Russian oil.
Since the G7 countries, except for Japan, and the EU are banning the imports of Russian seaborne oil, the price cap is a measure intended mostly for countries outside G7 and the EU. Insurers for the global oil market will be banned from dealing with Russian oil priced above the cap.
In a joint statement, the G7 group announced that the cap would come into effect on Dec. 5 "or very soon thereafter.”
In the same statement, the G7 said the cap was "to prevent Russia from profiting from its war of aggression against Ukraine, to support stability in global energy markets and to minimize negative economic spillovers of Russia's war of aggression."
"The Price Cap Coalition may also consider further action to ensure the effectiveness of the price cap," the statement reads.
Earlier on Dec. 2, the EU reached an agreement on the price cap after overcoming resistance from Poland, Estonia, and Lithuania, whose leaders called for the cap to be as low as possible to cause maximum damage to Russia’s shrinking economy.