BRUSSELS – G7 countries, European Union member states and Australia agreed to cap the price of Russian seaborne oil at USD60 per barrel starting Dec. 5, the European Commission said in a statement on Saturday.

"The international Price Cap Coalition has today finalized its work on implementing an oil price cap on Russian seaborne crude oil. EU Member States in the Council have also just approved in parallel its implementation within the EU. The cap has been set at a maximum price of $60 per barrel for crude oil and is adjustable in the future in order to respond to market developments," the statement read.

"The price cap also provides for a smooth transition - it will not apply to oil purchased above the price cap, which is loaded onto vessels prior to December 5 and unloaded before January 19, 2023," the European Commission added.

According to the document, "while the EU's ban on importing Russian seaborne crude oil and petroleum products remains fully in place, the price cap will allow European operators to transport Russian oil to third countries, provided its price remains strictly below the cap".

The European Commission has also confirmed that exclusions for some EU countries remain in effect, which particularly concerns Hungary who receives oil only through pipelines and supported Brussels’ move on the condition that the price cap would not apply to pipeline supplies.

Meanwhile, the European Union will prohibit its operators from insuring, financing and servicing third countries’ vessels transporting Russian oil purchased above a price cap for 90 days, the European Commission said.

"If a third country flagged vessel intentionally carries Russian oil above the price cap, EU operators will be prohibited from insuring, financing and servicing this vessel for the transport of Russian oil or petroleum products for 90 days after the cargo purchased above the price cap has been unloaded. If an EU vessel, such as an EU flagged vessel, violates the price cap, it will be subject to the consequences that follow under each Member State's national legislation," the commission said.

Russia said earlier it would not provide energy resources to countries introducing price caps and was determined to operate only on market terms. (TASS)