The European Union (EU) published in its official journal the decision to cap the price of Russian oil at $60 per barrel shortly after member countries approved the move.  

The cap will become applicable from December 5, 2022.

The measure, an idea of the Group of Seven nations (G7), comes on top of the EU's embargo on imports of Russian seaborne crude that also kicks in on December 5, and is meant to allow oil-related services to third countries only for those cargoes below the cap.

"It will also help us to stabilize global energy prices, benefiting countries across the world who are currently confronted with high oil prices," European Commission President Ursula von der Leyen said in a statement.

The price cap will prohibit G7 companies dealing with the insurance, re-insurance or financing of oil trade or to handle Russian crude oil cargoes to third countries unless the oil was sold at or below the $60 per barrel price cap.

In response to the deal, the Kremlin said in comments reported on Saturday that Russia "will not accept" a price cap on its oil and is analyzing how to respond.

Kremlin spokesman Dmitry Peskov said Moscow had made preparations for the price cap announcement by the G7, the EU and Australia, Russian news agency TASS reported.

Ukrainian President Volodymyr Zelenskyy on Saturday also criticized the price cap, calling it "a weak position" because it is not "serious" enough to destroy the Russian economy.

Urals crude closed trade on Friday at $67.44.

From Monday, the EU itself will not be buying any Russian seaborne crude, which had made up 94 percent of all Russian crude imports by the 27-nation EU.

The bloc will also stop any imports of Russian petroleum products from February 5. A G7 price cap on the petroleum products will also be set at a later date, using exactly the same mechanism as for crude oil, the Commission said.

From Monday, EU shipping companies will only be allowed to carry Russian crude if it is sold below or at the G7 price cap, which will be reviewed every two months, starting from mid-January, to keep it at least 5 percent below the market price.

If the price cap changes after the regular review mechanism, there will be a 90-day grace period to ensure that no vessel is caught at sea carrying oil bought at a price that is not accepted.

The price cap review is an EU-specific mechanism that will require unanimity among the 27 countries that make up the bloc for any changes to the price level. Once a change is agreed by the EU, it will be then discussed at the G7 level, which includes also the United States, Canada, Britain and Japan.

Before the Russia-Ukraine conflict began in February 2022, more than half of Russia's oil was exported to Europe, according to the International Energy Association.

Since the conflict, however, EU countries have been desperately trying to decrease their dependency. 

(With input from agencies)