The European Union has agreed on a $US60 per barrel price cap on Russian seaborne crude oil after holdout Poland gave its support, paving the way for formal approval at the weekend.
Warsaw had resisted the proposed level as it examined an adjustment mechanism to keep the cap below the market price. It had pushed in EU negotiations for the cap to be as low as possible to squeeze revenues to Russia and limit Moscow's ability to finance its war in Ukraine.
Polish Ambassador to the EU Andrzej Sados on Friday told reporters Poland had backed the EU deal, which included a mechanism to keep the oil price cap at least five per cent below the market rate.
US officials said the deal was unprecedented and demonstrated the resolve of the coalition opposing Russia's war.
The price cap, an idea of the G7 nations, aims to reduce Russia's income from selling oil, while preventing a spike in global oil prices after an EU embargo on Russian crude takes effect on December 5.
A spokesperson for the Czech Republic, which holds the rotating EU presidency and oversees EU countries' negotiations, said it had launched the written procedure for all 27 EU countries to formally green-light the deal, following Poland's approval.
Details of the deal are due to be published in the EU legal journal on Sunday.
European Commission President Ursula von der Leyen said the price cap would significantly reduce Russia's revenues.
"It will help us stabilise global energy prices, benefiting emerging economies around the world," von der Leyen said on Twitter, adding the cap would be "adjustable over time" to react to market developments.
The G7 price cap will allow non-EU countries to continue importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price cap.
Because the most important shipping and insurance firms are based in G7 countries, the price cap would make it very difficult for Moscow to sell its oil for a higher price.
The White House on Friday welcomed progress on the cap.
"A price cap will help limit Mr Putin's ability to profiteer off the oil market so that he can continue to fund a war machine that continues to kill innocent Ukrainians," national security spokesperson John Kirby told reporters.
The chair of the Russian lower house's foreign affairs committee told Tass news agency on Friday the European Union was jeopardising its own energy security.