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Group Of Seven Target Russian Commodities, Launch Funding Initiative To Challenge China


The Group of Seven leaders gathered in Germany on Sunday, with their talks dominated by Russia's invasion of Ukraine and attempts to calibrate coordinated response against Moscow to inflict maximum damage while minimising harmful side-effects.

  • Leaders pledged to maintain support for Ukraine's efforts to repel the Russian aggression "for as long as it takes," according to draft joint communique seen by Bloomberg. Some suggested it might be a sign that Western nations
  • Sources told Bloomberg that the G7 discussed a cap on the price of Russian crude oil and petroleum that would involve slapping curbs on insurance and shipping but it was not clear if leaders would be able to agree on the details by the end of the summit.
  • The idea of an oil price cap will be discussed on Monday with "partner" countries invited to the summit, such as India, Indonesia, Argentina, South Africa and Senegal. President Zelensky will also join the summit by video link on Monday.
  • The Guardian reported that Italian PM Draghi is lobbying for twin caps on the prices of Russian oil and pipeline gas and is now backed by French President Macron in his efforts. Draghi argued that "we need to reduce our funding to Russia. And we need to eliminate one of the main causes of inflation."
  • Separately, the U.S., Canada, Japan and the UK said they will ban the import of Russian gold, although the EU expressed its reservations. Bullion sales brought the Russian economy $15.5bn in 2021, representing a major source of export revenue.
  • UK PM Johnson said he would ask fellow leaders on Monday to discuss possible ways of opening export routes for Ukrainian grain. Seaborne shipments remain on hold due to the Russian naval blockade of Ukraine's seaports.
  • Although Ukraine was the focal point of the summit, leaders formally launched the Partnership for Global Infrastructure and Investment intended to challenge China's Belt-and-Road Initiative. The White House suggested it would seek to persuade the Group of Seven to invest $600bn in developing countries, with $200bn coming from the U.S. alone.

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