The European Union has agreed to cap the price of seaborne crude oil from Russia at 60 dollars a barrel as part of sanctions on Moscow.

In a statement on Friday, European Commission President Ursula von der Leyen said the measure "strengthens the effect of our sanctions" and "will further diminish Russia's revenues."

The statement also says the cap will stabilize global energy markets because EU operators will be allowed to trade and transport Russian oil sold within the cap to third countries.

EU member Estonia says the price cap will be reviewed on a regular basis.

The EU, together with the Group of Seven nations, is expected to implement the agreement soon.

Oil has been a major source of revenue for Russia as it continues its invasion of Ukraine.

An EU embargo on Russian crude is set to take effect on Monday. EU members were negotiating the cap due to concerns that the embargo alone would not be effective enough due to rising prices.