by Rafaela Prifti
The Group of Seven (G7) opened a three-day summit n the Bavarian Alps last Sunday to protect the economies of the global coalition while further isolating Russia, now in its fourth month of the invasion of Ukraine. The discussions centered on introducing price caps in the energy sector. The revenues from Russian oil and gas directly fuel Moscow’s war efforts. Prior to the gathering, Russian missile strikes were launched at two residential buildings in Kiev, where there had been no military assault in three weeks.
President Biden formally announced a global infrastructure partnership, a $600 billion initiative that aims to counter China’s influence and investment in the developing world. The leaders acknowledged the importance of their resolve as the economic reverberations from the war take a toll around the globe in inflation, food shortages and other issues. Meeting with President Biden, German Chancellor Olaf Scholz, who holds the G-7′s rotating presidency and is hosting the gathering said “Germany and the U.S. will always act together when it comes to questions of Ukraine’s security.” .
British PM Boris Johnson urged fellow leaders not to give in to “fatigue”. He praised the “huge strides” made by Germany to arm Ukraine and cut imports of Russian gas. Leaders echoed praises of coalition unity.
The Head of the European Union’s Council of Governments Charles Michel said the 27-member bloc maintains “unwavering unity” in backing Ukraine against Russia’s invasion with money and political support, but that “Ukraine needs more and we are committed to providing more.”
European Council President said EU governments were ready to supply “more military support, more financial means, and more political support” to enable Ukraine to defend itself and “curb Russia’s ability to wage war.”
Since the start of Russia’s invasion of Ukraine, the EU has imposed six rounds of sanctions against Russia. The latest is a ban on 90% of Russian crude oil imports by the end of the year.
The G-7 nations will ban imports of gold from Russia. According to news reports, a formal announcement is expected Tuesday as the annual summit wraps up.
PM Johnson said the ban will “directly hit Russian oligarchs and strike at the heart of Putin’s war machine….”starving the Putin regime of its funding.”
According to the White House, gold has been the top Russian export after energy — reaching almost $19 billion or about 5% of global gold exports, in recent years.
90% of Russian gold exports was consigned to G-7 countries. More than 90% of those exports, or nearly $17 billion, was exported to the U.K. The United States imported less than $200 million in gold from Russia in 2019, and under $1 million in 2020 and 2021.
The G7 is an informal grouping of advanced democracies that meets annually to coordinate global economic policy and address transnational issues.
Russia’s membership was suspended in 2014 over the annexation of Crimea.
Source: AP News