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The decision to impose price caps on Russian oil was adopted unanimously at a virtual meeting of G7 finance ministers and central bank leaders on Friday, according to Japanese Finance Minister Shunichi Suzuki.

The purpose of putting a price ceiling, according to the minister, is to limit Russia's income from energy sources, and Japan feels that this action will be "effective."

The price ceiling will go into force on December 5 for crude oil and February 5 for Russian refined goods. Following the G7 decision, the European Commission has already stated that it will make steps to put a price ceiling on Russia's oil by December.

On September 1, Russian Deputy Prime Minister Alexander Novak called the concept of a price restriction on Russian oil "absurd," and warned that Moscow would not deliver oil or oil products to countries who supported the plan.

Russia's oil export volumes have decreased since the commencement of the Ukraine war, although income increased by $700 million in June compared to May, according to the International Energy Agency in August, due to higher global oil prices.

The price ceiling, which Western leaders agreed on in principle in June, would limit the number of money refiners and merchants could pay for Russian oil. The measure is intended to reduce the Kremlin's earnings while keeping Russian oil on the market in order to avert a price upsurge.

Read next: G7 discuss banning services that enable the transport of Russian oil

Several unidentified G7 officials told Reuters that they doubted the ban would be successful if just the group's members - the United States, United Kingdom, Canada, France, Germany, Italy, and Japan - enforced it. They noted that in order for the measure to have a tangible impact on Russia's oil profits, the G7 would need the support of large oil consumers like China and India.

According to Reuters, such a situation is improbable. Furthermore, while about 95% of the world's tanker fleet now relies on London-brokered shipping insurance, the paper noted, citing unidentified analysts, that alternatives may be found.