The G7 in search of balance on Ukraine | War in Ukraine

European Council President Charles Michel summed up the common goal of the G7 members as follows: Cut off supplies to the Russian war machine while protecting our economies and those of our partners.

It is with this in mind that the group has confirmed the imposition of an embargo on imports of newly mined gold in Russia. The announcement will be made official on Tuesday after the summit.

The goal is to isolate Russia from the international financial system and avoid financing the Russian war effort by paying Moscow billions in imported resources.

Together we, the members of the G7, will announce that we will ban Russian gold, a major export source, which will deprive Russia of billions of dollars tweeted US President Joe Biden.

These measures will directly hit the Russian oligarchs and attack the heart of Putin’s war machine.British Prime Minister Boris Johnson said in a statement.

Russia is a major gold-producing country whose exports represented nearly 15 billion euros (about 20.4 billion Canadian dollars) in 2021, or 5% of the world market, according to London and Washington.

Ninety percent of these exports are directed to G7 countries, and the overwhelming majority to the United Kingdom.

The British government insists that the measure will huge impact on Putin’s ability to raise funds.

This will particularly hit the Russian elites who were able to buy gold in an attempt to circumvent Western sanctions.he added.

The precious metal is Russia’s second largest export, after energy.

Financing fossil fuels

Some G7 leaders are pushing for recognition of the need for new funding to invest in fossil fuels, despite commitments made at COP26 to suspend funding for international fossil fuel projects by the end of 2022.

[Il est] possible that there is a formula in the declaration that investments in fossil fuels should be possible for a certain period of timesaid a European diplomat.

A source claimed that German Chancellor Olaf Scholz – the G7 chairman – had put the issue of new infrastructure on the leaders’ agenda, and that discussions were underway on whether to include it in the declaration summit final. However, a German government spokesman declined to comment.

It’s about how to achieve climate transition despite the use of gas as a form of transition energy, and how to ensure that this is not used as an excuse to relax climate targets.a German government official said on Saturday.

A file that divides

Supplying the European continent with energy is also one of the key issues of this G7 summit.

While Ukraine reiterates its demand for an embargo on Russian gas and oil, this issue divides Western allies, as their needs and interests do not perfectly match.

If Washington, Ottawa and London have already banned imports of Russian oil, European countries are more reluctant.

This is the case of Germany, which still depends 35% on Russian gas imports for its consumption.

Last week, the Russian energy giant, Gazprom, reduced its gas exports by 60% through the Nord Stream 1 pipeline, on which Germany is very dependent.

Berlin fears that Russia will come to completely cut off this supply route. The government has even warned of a gas shortage next winter.

The leaders of the 27 countries of the European Union have also said they expect a difficult winterFriday.

Meeting in Brussels, they pledged to reduce their dependence on Russian energy.

But in the short term, countries in Europe are calling for closer coordination of gas and oil purchases from Russia.

This would make it possible to avoid overbidding between the various European countries in addition to limiting the energy royalties which finance the Kremlin’s war effort.

Ways to cap the price of Russian oil are also under discussion constructive at the G7, according to a German official.

Unity on this issue, and more generally on how to help Ukraine and punish Russia, could define this G7 meeting.

In any case, it was recognized as crucial by the American president, Joe Biden.

We must stay united. Putin counts from the beginning on the fact that, one way or another, theNATO and the G7 would split. But we haven’t and we won’t.