World

G7 and allies approve cap on price of Russian oil

December 3, 2022 1:23 pm

[Source: BBC]

The G7 group of countries and its allies have officially approved a cap on the price of Russian oil.

In a joint statement, the G7 and Australia say the price cap will come into force on 5 December or “very soon thereafter”.

It comes after the European Union agreed on the price cap after persuading Poland to back it.

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The plan, which stops countries paying more than $60 a barrel, needed the agreement of all EU states.

Poland announced its support on Friday after being reassured the cap will be kept at 5% lower than the market rate.