Leaders of the Group of Seven on Tuesday presented a united front to back Ukraine “for as long as it takes” as the Russian invasion continues to advance, saying they will consider far-reaching measures to limit Kremlin income for the sale of oil, which are financing the war.
The final declaration of the German meeting underlined the intention to impose “serious and immediate economic costs” in Russia. did not explain the details key to the operation, in practice, of the limitation of the price of oil, so that in the coming weeks the possibility of “explore” measures prohibiting the import of Russian crude oil above a certain level.
This could affect a key source of income of Moscow and, in theory, would help alleviate the rise in energy prices and inflation that is wracking the global economy as a result of the war.
“We remain steadfast in our commitment to our unprecedented coordination on sanctions for as long as necessary, acting in unison at every moment,” said the leaders of the world’s most industrialized nations.
Olaf Scholz addresses a final statement to the media, at the end of the summit. Photo: Ronny Hartmann/ AFP
Furthermore, they agreed ban imports of Russian gold and increasing aid to countries affected by food shortages stemming from the Russian blockade of Ukrainian grain exports through the Black Sea.
Oil price cap
The price cap would work, in theory, by prohibiting service providers such as carriers or insurers from dealing in a value of oil whose price exceed the set level. This could result because the suppliers are mostly in the European Union or Great Britain and therefore fall under sanctions.
However, to be effective, it would have to involve as many consumer countries as possible, particularly India, where refiners have been buying cheap Russian oil, which was rejected in the West. Details on the implementation of the proposal will be determined in the coming weeks.
Before closing, the leaders condemned what they described as “abominable’‘ Russian attack on a shopping mall in the town of Kremechuk, calling it a “war crime”, and promised that Russian President Vladimir Putin and others involved “will be held accountable”.
The leaders of the United States, Germany, France, Italy, Britain, Canada and Japan pledged on Monday to support Ukraine “for as long as necessary” after meeting by video conference with Ukrainian President Volodymyr Zelensky.
The host of the summit, German Chancellor Olaf Scholz, said that “once again, he laid out with great emphasis the situation as Ukraine sees it today.” Zelensky’s speech at the height of Russia’s advance into eastern Ukraine came hours before authorities reported the deadly Russian attack on a busy shopping mall in the central Ukrainian city.
Duty
During the summit, officials have indicated that the world’s major economies are prepared to present plans that, in addition to limiting the price of Russian oil, raise tariffs on Russian products, as well as the imposition of new sanctions.
From the picturesque Schloss Elmau hotel in the Bavarian Alps, the leaders of the G7 they will travel directly to Madrid for a NATO summit, where the consequences of the Russian invasion of Ukraine will dominate the agenda. All the members of the group, with the exception of Japan, form part of the Alliance, and the Japanese Prime Minister, Fumio Kishida, has been invited to the meeting in Spain.
Biden waves from Air Force One in Munich. Next stop: Madrid. Photo: Brendan Smialowski/AFP
Zelensky has openly expressed concern that the West has grown weary of the cost of a war that is contributing to rising energy and commodity prices around the world. The G7 has tried to allay these concerns.
Although the group annual meeting been dominated by Ukraine and by the repercussions of the war, such as the challenge of food supply to some parts of the world after the interruption of Ukrainian grain exports, Scholz wanted to show that the G7 can also advance priorities pre-war.
“Weather Club”
The G7 also committed to the creation of a new “climate club” for countries that want to adopt a more ambitious approach in the fight against global warming.
The initiative, promoted by Scholz, contemplates that the nations that adhere accept stronger measures to reduce greenhouse gas emissions with the goal of preventing global temperatures from rising more than 1.5 degrees Celsius (2.7 Fahrenheit) this century, compared to the pre-industrial era.
The G7 will create a “climate club” for countries that want to take a more ambitious approach to combating global warming. Photo: Kerstin Joensson/ AFP
Following a meeting with leaders from five developing nations on Monday, the joint statement issued by Germany stressed the need to accelerate a “clean and fair energy transition” to end the burning of fossil fuels without causing a sharp rise in unemployment.
On the other hand, the G7 agreed to allocate 4,500 million dollars to tackle food insecurity in the world.
The White House announced Tuesday that the United States will contribute $2.76 billion to the cause. The funds will be used for assist 47 nations and organizations regions that address food insecurity and malnutrition.
The most needy area is the Horn of Africa, where the Russian blockade on Ukrainian grain exports has worsened an already desperate situation, the US government said. The region suffers fourth consecutive dry season and up to 20 million face the threat of famine at the end of famine.
Zeke Miller y Geir Moulson, Associated Press
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