The G7 and Australia said in a statement the price cap would take effect on Dec. 5 or very soon thereafter. "The Price Cap Coalition may also consider further action to ensure the effectiveness of the price cap," the statement read. 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 initial G7 proposal last week was for a price cap of $65-$70 per barrel with no adjustment mechanism.

---