EU countries agree new sanctions on Russia that includes a price cap on Russian oil

The European Union has approved new sanctions against Russia, including a price cap on the maritime trade of Russian oil.

It comes in direct response to the illegal annexation of four Ukrainian regions.

The latest sanctions, endorsed on Wednesday morning by EU ambassadors, also introduce new exports and imports ban, as well as a brand-new provision that would prevent EU nationals from sitting on governing boards of Russia's state-owned companies.

New individuals and entities accused of undermining Ukraine's territorial sovereignty are being added to the extensive blacklist.

Fossil fuels are Russia's main source of revenue and make up 45% of the country's federal budget.