The Group of Seven nations and Australia have agreed to cap the price of Russian seaborne crude oil at 60 dollars a barrel. The so-called "Price Cap Coalition" aims to restrict funding for Russia's invasion of Ukraine.

The US government said on Friday that the price cap will take effect on Monday.

The move follows a similar agreement reached by the European Union earlier on Friday.

The US government says the coalition will ban maritime insurance and trade finance services related to seaborne Russian oil, unless it is traded at or below the price cap.

It notes that companies based in G7 economies control around 90 percent of the market for relevant maritime insurance products and reinsurance.

US Treasury Secretary Janet Yellen led the negotiations. She said in a statement that the price cap will immediately cut into Russia's most important source of revenue. She noted that the country's economy is already contracting and its budget increasingly strained.

US officials say the new measure will benefit emerging markets and low-income economies that are highly exposed to rising energy prices.

Countries in the coalition had already decided to phase out imports of Russian oil.

The Sakhalin-2 oil and natural gas project in Russia's Far East will be exempt from the price cap until the end of September next year. Japanese companies are involved in the venture.