Photo: The Canadian Press
Leaders of the world’s largest developed economies said Tuesday they will explore powerful steps to limit Russia’s revenue from oil sales that are funding its invasion of Ukraine and took a united stand to support Kyiv “the time it takes” while the war breaks out. activated.
The final statement of the Group of Seven summit in Germany underscored its intention to impose “serious and immediate economic costs” on Russia.
He set aside key details about how fossil fuel price limits would work in practice, and set out further debates in the coming weeks to “explore … the feasibility” of measures to ban Russian oil imports above ‘a certain level.
This would affect a key source of Russia’s income and, in theory, help alleviate the spikes in energy prices and inflation that affect the world economy as a result of the war.
“We stand firm in our commitment to our unprecedented coordination of sanctions for as long as necessary, acting in unison at all stages,” the leaders said.
G-7 leaders – representing the US, Germany, France, Italy, the UK, Canada and Japan – pledged on Monday to support Ukraine “for as long as it takes” after video chat with Ukrainian President Volodymyr Zelenskyy. Zelenskyy has openly worried that the West will get tired of the cost of a war that is contributing to rising energy costs and rising prices for essential goods around the world. The G-7 has tried to allay these concerns.
Leaders also agreed to ban Russian gold imports and increase aid to countries affected by food shortages by blocking Ukrainian grain shipments across the Black Sea.
“We agree that (Russian) President Putin should not win this war, and we will continue to keep pace and increase economic and political costs for President Putin and his regime,” the summit host said. German Chancellor Olaf Scholz. . “That’s why it’s important to be united, even in the long run we still face.”
French President Emmanuel Macron said Russia “cannot and should not win” the war in Ukraine, as its terrible toll was fully visible the day after a Russian missile attack hit a shopping center in the city of Kremenchuk and killed 18 people.
In theory, the price cap would work by preventing services such as carriers or insurers from dealing with oil at a price above a fixed level. This could work because service providers are mostly in the European Union or the UK and therefore within the reach of sanctions. To be effective, however, it would have to involve as many consuming countries as possible, particularly India, where refineries have been buying cheap Russian oil, rejected by Western traders. Details on how the proposal would be implemented were left to continue talks in the coming weeks.
The US has already blocked Russian oil imports, which in any case were small. The European Union has decided to impose a ban on 90% of Russian oil arriving by sea, but the ban will not take effect until the end of the year, meaning Europe continues to send money to Russia for energy even though it condemns the war. . Meanwhile, rising world oil prices have softened the blow to Russia’s revenue, even as Western traders avoid Russian oil.
Energy issues were at the forefront and centerpiece of the summit. Europe is struggling to find new sources of oil and new gas supplies while Russia is reducing its gas supply in what leaders say is a political move. Meanwhile, high energy prices are a headache for consumers in G-7 countries.
Scholz defended the G-7’s decision to soften commitments to end public support for fossil fuel investments, saying the war in Ukraine means time-limited support may be needed for new extraction projects. of natural gas.
The group showed widespread concern for China. Leaders stressed the need to “cooperate with China on shared global challenges,” but stressed its position that China should urge Russia to stop the war, respect human rights in Hong Kong, refrain from military actions against Taiwan and improve its transparent trade and economic practices.
From the secluded Schloss Elmau Hotel in the Bavarian Alps, G-7 leaders will travel to Madrid for a summit of NATO leaders, where the aftermath of the Russian invasion of Ukraine will once again dominate the agenda. All members of the G-7, except Japan, are members of NATO, and Japanese Prime Minister Fumio Kishida has been invited to Madrid.
Although the group’s annual meeting has been dominated by war, Scholz has sought to show that the G-7 can also advance pre-war priorities.
Members pledged Tuesday to create a new “climate club” for nations that want to take more ambitious steps to deal with global warming.
The measure, driven by Scholz, will make countries joining the club agree on tougher measures to reduce greenhouse gas emissions in order to prevent global temperatures from rising by more than 1.5 degrees Celsius. (2.7 Fahrenheit) this century compared to the pre-industrial era.
The countries that are part of the club will try to harmonize their measures so that they are comparable and prevent members from imposing climate-related tariffs on the imports of others.
Scholz said the goal was to “ensure that protecting the climate is a competitive advantage, not a disadvantage.”
He said the details of the planned climate club would materialize this year.