The 7 richest countries in the world are also close to reaching an agreement on a ceiling on the price of Russian oil.
A US representative said during the G7 summit that the world’s 7 largest economies will announce a new sanctions package against Russia. The summit began last Sunday (June 26, 2022), in southern Germany, and should last for 3 days. Countries must also set a price ceiling for Russian oil. The information is from Reuters.
According to the US official, the G7 plans to hurt Russian revenues without affecting other economies in the world. The war in Ukraine has had a major impact on the global economy, pushing up the prices of gas, oil and food.
The new sanctions, according to the Financial Timesshould also affect the ability to import key technologies for the Russian arms industry.
During the summit, Ukrainian President Volodymyr Zelensky told G7 leaders that the war in his country must end by the end of this year. The information was passed on by 2 European Union diplomats.
Last Sunday (June 26), the United Kingdom, Canada and Japan announced that they will ban gold imports from Russia. The measure will apply to newly mined or refined metal and does not affect product imported before the ban took effect.
Also on Sunday (June 26), Russia defaulted on its 1st foreign debt since 1917. The country missed the deadline to meet a 30-day grace period in interest of US$ 100 million in 2 Eurobonds due on 27 of May, according to Bloomberg. The White House attributed the non-compliance to sanctions.
G7
The leaders of the group of 7 most developed nations in the world –Germany, Canada, France, Italy, Japan, United Kingdom and USA– have been meeting in Germany since Sunday (26.June). The impact of the war in Ukraine on the global economy and the threat to European security should be the main topics discussed at the G7 Summit.
The UN (United Nations) has already warned of the risks of a prolonged war in Ukraine. As Kiev is one of the world’s biggest grain exporters, the conflict poses a threat of a global food crisis.
Russia, on the other hand, was Europe’s biggest supplier of natural gas. Western sanctions against Moscow have driven prices up.
The UK said it was ready to provide an additional $525 million in World Bank loans to Ukraine later this year. If the figure is confirmed, fiscal support to the country will reach US$ 1.5 billion in 2022 alone.
“Ukraine can and will win. But they need our support for that. Now is not the time to give up on Ukraine,” Johnson said Saturday (June 25).
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