The EU has come to an agreement on a price cap of USD 60 per barrel of Russian crude, paving the way for a wider agreement between G7 nations, informs Polish diplomat, according to Bloomberg News.

The cap is higher than Russia’s current selling price of crude supplies, but one of the principal aims for the EU’s price cap is to keep oil flowing to global markets, writes Bloomberg.

However, the cap is set at a lower price than a previous proposal stipulated following pressure from Poland and other Baltic nations.

Prior reports mentioned talks of a cap at USD 65 to USD 70 for a barrel of Russian crude.

G7 and Australia following suit

The G7 nations and Australia have also embraced the price cap on Russian exports of USD 60 per barrel.

The countries inform that the cap will take effect on Dec. 5 or shortly thereafter, according to Reuters.

The aim of the price cap is to put pressure on revenue from the sales of crude, and at the same time keep global oil supplies stable.

G7 consists of Canada, France, Germany, Italy, Japan, the UK and the US.

The EU is also represented at G7 meetings in the form of EU Commission President Ursula von der Leyen and President of the European Council Charles Michel.

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