G7 members have agreed to set a price cap on Russian oil in a bid to crack down on Moscow's ability to finance the war in Ukraine.

Finance ministers said the cap on crude oil and petroleum products would also help lower global energy prices.

The limit will be set at a level based on a series of technical data, the BBC reports.

"We will continue to stand with Ukraine for as long as it takes," the G7 said.

Russia said it would stop selling oil to countries that imposed price caps.

"Companies that set a price cap will not be among the recipients of Russian oil," Kremlin spokesman Dmitry Peskov said.

The G7 (Group of Seven) consists of the United Kingdom, the United States, Canada, France, Germany, Italy and Japan.

The group is an organization of the world's seven largest "advanced" economies, which dominate global trade and the international financial system.

In their virtual meeting, the finance ministers said the oil price cap plan was "specifically designed" to reduce Russian revenues and its ability to "finance its war of aggression".

They also said they wanted to minimize the damaging economic consequences of the conflict, "especially in low- and middle-income countries."

The introduction of a price cap on Russian oil means that countries that sign up to the policy will only be allowed to buy Russian oil and oil products transported by sea that are sold at or below the price cap.