The Novoshakhtinsk oil refinery of Russia (Photo: TASS/ VNA)

EU diplomats said the price caps are 100 USD per barrel on products that trade at a premium to crude, principally diesel, and 45 USD per barrel for products that trade at a discount, such as fuel oil and naphtha. Ambassadors for the 27 EU countries agreed on the European Commission proposal, which will apply from Sunday.

The price caps, together with an EU ban on Russian oil product imports, are part of a broader agreement among the Group of Seven (G7) countries. It follows a $60 per barrel cap on Russian crude that G7 countries imposed on Dec 5.