It occurred around six months after the initial invasion of Ukraine by Vladimir Putin's Russian troops.
G7 ministers issued a joint statement in which they confirmed the price cap. This price cap will be based on a variety of technical inputs and will involve a price level that will be reevaluated whenever it is deemed essential to do so.
In addition, the ministers stated, "We intend to match implementation with the timing of comparable measures contained within the EU's sixth sanctions package."
Mr. Zahawi added in a second statement that taking additional steps against Putin was a "particular priority as Chancellor."
His words were as follows: "Since Putin's bloody and unprovoked invasion of Ukraine, the United Kingdom and our allies have tried to impose potentially devastating sanctions on the Kremlin war machine. These punishment have pushed the Russian economy into an economic depression and rendered the majority of Russia's 640 billion dollars worth of currency reserves useless."
"After a fruitful discussion with Secretary Janet Yellen in Washington, and together with our G7 allies, we have decided to take the next step.
"We will reduce Putin's ability to pay his war through oil exports by prohibiting services, like as insurance and the provision of finance, to vessels carrying Russian oil at a price that is higher than the price cap that has been agreed upon.
"We are united in our opposition to this barbarous invasion, and we pledge to do everything in our power to support Ukraine in their battle for sovereignty, democracy, and freedom,"
In spite of falling oil quantities, Russia experienced an increase in the value of its oil sales in June of more than £600 million compared to the previous month. This was owing to prices skyrocketing as a direct result of the conflict in the region.