Laura Osman, The Canadian Press Posted on Monday, June 27, 2022 6:29 AM EDT Last Updated on Monday, June 27, 2022 5:21 PM EDT
SCHLOSS ELMAU, GERMANY – Leaders of the Group of Seven on Monday considered a possible cap on the price of Russian gas exports as a way to reduce funding for Vladimir Putin’s war with Ukraine.
Rising oil prices have created a revenue boom for Russia as it continues its assault on the neighboring country, undermining sanctions imposed by Western countries, including those represented by leaders at the G7 summit in Schloss Elmau, a tourist center of southern Germany.
Ukrainian President Volodymyr Zelenskyy held a two-hour meeting with G7 leaders at the start of the day. In a virtual appearance, he outlined what his country needs, including tougher sanctions to prevent Putin from financing the war.
The leaders pledged in a statement to support Ukraine “for as long as it takes.” Prime Minister Justin Trudeau on Monday announced new sanctions on 74 more people and businesses in Russia and Belarus, and more are expected to come on Tuesday.
Canadian government officials at the summit, who offered a briefing to the media on the condition that they were not identified, said a cap on the price of Russian oil could serve to reduce the country’s profits at a major source of revenue. They also acknowledged that the details are still in process.
Some market analysts doubt the effectiveness of limiting the price of Russian oil, as the implementation of the G7 would probably depend on the cooperation of India and China.
“It is questionable whether countries like India and China will agree to stop buying Russian oil, especially because it is trading at a significant discount on the world market price,” Commodzbank commodity analyst Carsten Fritsch told The Associated Press .
The Prime Minister of India, Narendra Modi, was invited to the G7 summit by the host, German Chancellor Olaf Scholz.
By early June, the country of 1.4 billion people had bought about 60 million barrels of Russian oil this year, compared to 12 million barrels in all of 2021, according to Kpler, a commodity data company first.
In a photo shoot with the G7 and other leaders, Modi grabbed Trudeau’s hand enthusiastically as he approached. But later, in an individual meeting, the tone was much darker.
Both would discuss the impact of Russia’s war on Ukraine, democracy and human rights, Trudeau said while meeting with Modi.
G7 leaders, which also includes the United States, the United Kingdom, Germany, France, Italy and Japan, are expected to publish their final consensus at the end of their summit on Tuesday.
They will then join others in Madrid for a NATO meeting to discuss the military implications of the conflict.
The conflict in Ukraine has been a recurring theme at Trudeau’s meetings with world leaders in Germany, as well as last week’s meeting of Commonwealth heads of government in Rwanda.
“Canada is unshakable in its belief that Ukrainians deserve to live in peace,” Trudeau said in a written statement announcing the new sanctions on Monday.
“Vladimir Putin and his regime have caused incalculable pain and suffering in Ukraine and around the world. Together with our G7 counterparts, Canada is increasing our ongoing and coordinated pressure to end the war. election of Vladimir Putin “.
The new sanctions include six people and 46 entities linked to the Russian defense sector, 15 Ukrainians who support the Russian occupation of the country and 13 people linked to the government and defense and two entities in Belarus.
The Canadian government also plans to introduce sanctions against disinformation and state-sponsored propaganda agents controlled by senior government officials, Trudeau said, in an attempt to counter Kremlin misinformation.
Canada will also ban the export of advanced technologies that would enhance Russia’s national defense manufacturing capabilities.
Trudeau also announced that Canada, along with the United States, the United Kingdom and Japan, will ban the import of certain gold products from Russia, closing the commodity outside formal international markets.
Russia was about to pay its foreign debt on Sunday for the first time since the Bolshevik revolution of 1917, further alienating the country from the world financial system.
Russia considers any default to be artificial because it has the money to pay off its debts, but says sanctions have frozen its foreign exchange reserves.
In his meeting with G7 leaders, Zelenskyy said he wanted to see the end of the war in the winter and deny Russia victory, Canadian officials said at the briefing, but the president of Ukraine did not explain how he expects it to be, or what truce he might settle for.
He also urged leaders to start planning the eventual reconstruction of Ukrainian communities and infrastructure that have been destroyed by Russian bombing and fighting.
Russia on Monday announced its own set of new sanctions against Canada, targeting 43 Canadians, including former adviser to Prime Minister Gerry Butts, former Bank of Canada Governor Mark Carney and Conservative strategist Jenni Byrne.
Before the meeting, Trudeau and Scholz spoke during a walk from the manor house building, or schloss in German, to one of the meadows, located between the building and the view of the mountain.
“We are … prudent that we will help Ukraine as much as possible, but we also avoid a major conflict between Russia and NATO,” Scholz told the media during a photo shoot with Trudeau.
The night before, in Kyiv, the capital of Ukraine, weeks of general calm were broken by Russian missile attacks. The missiles hit a nursery and a residential building, killing a man and injuring a woman and a child, the city’s mayor said.
This report from The Canadian Press was first published on June 27, 2022.
– With archives of The Associated Press