EU member states have agreed to impose a price cap on Russian oil as they seek to drive down the Kremlin’s revenues and further punish Vladimir Putin’s war in Ukraine, Financial Times reports.

Ambassadors from the 27 countries on Wednesday signed off on the proposed ceiling on the price of crude shipped to countries outside of the union as part of the bloc’s eighth package of sanctions against Moscow, according to four people with knowledge of the decision.

The price cap has been under negotiation among G7 partners for months. Officials briefed on the talks told the Financial Times that the exact details of the price cap were not included in the eight package, pending adoption by the G7, and that fresh unanimous agreement would be required to implement them.

The EU also agreed that it would take into account the effectiveness, international response and impact on its own economies from the price cap, in deciding how to impose it, the officials added.

The EU was under pressure to strike a deal on the new package — which also includes more restrictions on import and export of goods and sanctions on Russian government officials — in response to Putin’s annexation of four of Ukraine’s regions.

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