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STORY: Tankers loading at Russian ports on Monday (December 5) face an uncertain voyage.

A price cap on the country’s oil kicked in that day.

It’s been imposed by the G7 group of nations, the European Union and Australia.

The cap sets a maximum price of $60 per barrel for oil transported by sea.

Shippers will only be able to take Russian crude to third countries using G7 or EU tankers and insurance companies if the price is below that level.

That could make it difficult for Moscow to sell its oil for a higher price.

Western capitals hope that will limit the Kremlin’s ability to fund its war in Ukraine.

However, Russia is sounding defiant.

On Sunday (December 4), it said it wouldn’t sell oil that is subject to the cap, even if that means reducing production.

Russia is expected to issue a decree that will, in effect, ban export to companies and countries that apply the cap.

Moscow can probably also still rely on help from China.

Russia’s RIA news agency says Beijing has promised to maintain cooperation on energy supplies.

The EU and G7 will review the cap level every two months, starting in mid-January.

A similar cap on petroleum products will come into force in early February.