The European Union (EU) agreed on the 2nd to cap the price of Russian crude oil at $60 a barrel.
The Czech Republic, the presidency of the European Union, announced on Twitter on the same day (2nd) that it had reached an agreement on a price ceiling for Russian crude oil.
Poland, which had previously suspended its decision to keep its crude oil price cap below the market price, said it agreed to the deal.
Andrzej Sados, Polish ambassador to the EU, said that the agreement includes a mechanism to keep the price ceiling at least 5 percent below the market price.
However, this agreement must go through an official certification process through documents.
The US welcomed the news and said it was confident the agreement would help limit Russian revenues.
White House National Security Council Strategic Communications Coordinator John Kirby told reporters that an oil price cap would “prevent Russia from financing a war that kills innocent citizens of Ukraine by making it unprofitable in the oil market.”
He added that he believes $60 per barrel is a very appropriate level and that he believes it can produce the desired effect.
He added that this would be a “significant reduction” as there were indications only a month or two ago that President Putin would raise $100 a barrel.
Meanwhile, Russia has warned that it will cut the remaining crude supply through the pipeline if the cap on the price of crude oil is implemented.
* This article was sourced from The Associated Press and Reuters.