Italian Industry Minister Adolfo Urso announced on Saturday that his country's government passed a decree that allows Italy's energy company Eni to run an oil refinery owned by Russia's Lukoil energy giant.

The decree passed on Thursday came following sanctions on Russian oil, especially by the US, that threatened the operations of the ISAB oil refinery that delivers almost 20% of the country's fuel needs and currently refines Russian Urals oil.

"By passing this decree, the government assumes the responsibility for temporary emergency management, possibly through another oil company, which could be Eni. This will guarantee continuous production," the minister stated, adding that he was assured by US officials that the banks funding the plan will not be sanctioned.

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On Friday, the G7 nations and Australia issued a statement saying that had come to an agreement on the maximum price cap of Russian crude oil: $60 per barrel, a decision which will come into effect on December 5.

The price cap developed by the US-led international coalition will be implemented on February 5, 2023, and includes a price review mechanism that will keep the price cap at 5% below the market value.

The US welcomed the European Union's decision to join the G7 in imposing a $60-per-barrel price cap on Russian oil exports, saying it will slow the Kremlin's "war machine".

Read more: US pressures EU on price cap for Russian oil: Reports

Major oil producers are expected to adhere to their current output strategy and even cut down oil production further in their coming meeting on Sunday amid falling oil prices, a coming Russian oil price cap, and sanctions.

Kremlin reacted to the statement by stressing that Russia will not accept the oil price cap, and will announce later how work will be organized.

The First Deputy Chairman of the Russian Federation Council Committee on Economic Policy Ivan Abramov commented that a price cap on Russian oil would lead to an explosive hike in fuel prices around the world.

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It's noteworthy that Russian President Vladimir Putin said in September that Russia will stop supplying oil and gas to countries that impose price ceilings.

Capping prices, as some Western countries are considering, "would be an absolutely stupid decision," Putin stated.

"No gas, no oil, no coal, no fuel oil, nothing," he added referring to sales to countries adopting the price cap.