A new set of restrictions has been imposed on Russian oil exports, amid fears that this could upset the global market and see further price rises.
The new oil cap, which comes into force today, was agreed to by the G7 and its allies, with a corresponding move being made by the European Commission to ensure enforcement across the EU.
The cap prevents signatories from spending more than $60 USD per barrel of oil, with this price to be reviewed every two months.
Oil prices have risen by 2% to $87.25 USD a barrel, as reported by the BBC, amid concerns of disruption to the international market.
Any G7 or EU tankers shipping Russian oil in breach of this price cap will face penalties, although these vary from country to country.
Tradewinds reports that the UK government has said the penalties for any failure to comply with the restrictions could include fines of $1.2m or more, depending on the scale.
The EU is reportedly working to impose a penalty of up to 5% of global turnover for EU flagged vessels acting in violation.
Further, non-EU or G7 tankers acting in breach could be locked out of European services – such as insurance or finance – for 90 days.
The Kremlin responded by stating they would not export oil under any cap to Western nations, and that they would consider reducing production to make up for lost exports.
Russian deputy prime minister Alexander Novak said it "will only sell oil and oil products to those countries that will work with us on market conditions, even if we have to somewhat cut production," as reported by Politico.
The Organization of the Petroleum Exporting Countries (OPEC), a cartel of oil producing states, have stuck to their production levels in spite of the cap, reports Sky News.
According to The Telegraph, OPEC said it was ready to “meet at any time” and could “take immediate additional measures”.
OPEC, which includes many Middle Eastern states, had previously been accused of “siding with Russia” after a previous cut in oil production.
However, the FT is reporting that the United Arab Emirates has opened trade talks with Ukraine, in an effort to boost economic links between the two countries.