Biden says G7 must stick together as gold sanctions target Putin’s ‘war machine’

SCHLOSS ELMAU, Germany, June 26 (Reuters) – U.S. President Joe Biden informed allies “we have to stay together” in opposition to Russia, as world leaders met on Sunday at a G7 summit within the Bavarian Alps that will probably be dominated by battle in Ukraine and its painful affect on meals and power provides throughout the globe.

At the beginning of the assembly, 4 members of the Group of Seven wealthy nations moved to ban imports of Russian gold as a part of efforts to tighten the sanctions squeeze on Moscow and minimize off its technique of financing the invasion of Ukraine.

However, it was not instantly clear whether or not there was consensus on the transfer, with European Council President Charles Michel saying the difficulty would should be dealt with rigorously or threat backfiring.

Western nations rallied round Kyiv when Russia invaded Ukraine in February, however greater than 4 months into the battle, that unity is being examined as hovering inflation and power shortages rebound on their very own residents.

Chided by Ukraine for not going far sufficient to punish Russia, G7 leaders had been additionally having “really constructive” talks on a potential worth cap on Russian oil imports, a German authorities supply stated earlier.

At the beginning of a bilateral assembly, Biden thanked German Chancellor Olaf Scholz for displaying management on Ukraine and stated Russian President Vladimir Putin had failed to interrupt their unity. Scholz has confronted criticism at house and overseas of his dealing with of Russia’s invasion of Ukraine.

“We can get through all of this and come out stronger,” Biden stated.

“Because Putin has been counting on it from the beginning that somehow the NATO and the G7 would splinter. But we haven’t and we’re not going to.”

Britain stated the ban on Russian gold imports was aimed toward rich Russians who’ve been shopping for safe-haven bullion to cut back the monetary affect of Western sanctions. Russian gold exports had been price 12.6 billion kilos ($15.45 billion) final yr.

“The measures we have announced today will directly hit Russian oligarchs and strike at the heart of Putin’s war machine,” British Prime Minister Boris Johnson stated in a press release.

“We need to starve the Putin regime of its funding. The UK and our allies are doing just that.”

Britain, the United States, Canada and Japan will ban Russian gold imports. France additionally supported the transfer.

On the oil worth cap and on the gold import ban, Michel stated the difficulty would should be mentioned additional.

“I’m careful and cautious, we are ready to go into the details,” he stated. “We are ready to take a decision together with our partners, but we want to make sure that what we decide will have a negative effect (on Russia) and not a negative effect for ourselves.”

As missiles struck the Ukrainian capital Kyiv on Sunday, hitting an house block and a kindergarten, Foreign Minister Dmytro Kuleba stated the G7 must reply with extra weapons and harder sanctions on Russia. learn extra

Biden known as the strikes acts of “barbarism”.

MESSAGE OF UNITY

The summit takes place in opposition to an excellent darker backdrop than final yr, when the leaders of the G7 nations – Britain, Canada, France, Germany, Italy, Japan and the United States – met for the primary time for the reason that begin of the COVID-19 pandemic.

As delegates arrived at Schloss Elmau, a fortress on the foot of the Wetterstein mountains, they had been greeted with flowers as Bavarian mountain riflemen stood to consideration within the sunshine.

Leaders are anticipated to debate choices for tackling rising power costs and changing Russian oil and fuel imports. They additionally need to keep away from sanctions that would stoke inflation and exacerbate the cost-of-living disaster affecting their very own populations.

Soaring international power and meals costs are hitting financial development within the wake of the battle in Ukraine, with the United Nations warning of an “unprecedented global hunger crisis”. learn extra

Climate change, an more and more assertive China and the rise of authoritarianism are additionally set to be on the agenda.

The summit offers a chance for Scholz to show extra assertive management on the Ukraine disaster.

Scholz vowed a revolution in German overseas and defence coverage after Russia’s invasion in February, promising to bolster the army and ship weapons to Ukraine. But critics have since accused him of dragging his toes and sending blended messages.

This yr Scholz has invited Senegal, Argentina, Indonesia, India and South Africa as accomplice nations on the summit.

Many nations of the worldwide south are involved in regards to the collateral injury from western sanctions.

An EU official stated G7 nations would impress upon the accomplice nations that meals worth spikes hitting them had been the results of Russia’s actions and that there have been no sanctions focusing on meals. It was additionally a mistake to think about the Ukraine battle as an area matter.

“It’s more than this. It’s questioning the order, the post Second World War order,” the official stated.

Reporting by Sarah Marsh, Andrea Shalal, Philip Blenkinsop, John Irish, and William Schomberg; Editing by Raissa Kasolowsky
Writing by Sarah Marsh and Matthias Williams
Editing by Peter Graff and David Goodman

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