On Monday, the affluent Group of Seven countries committed to support Ukraine “for as long as it takes” and promised to impose more restrictions on Russia’s economy, including a plan to freeze the price of its oil.
In a video message to G7 leaders at their summit in the Bavarian Alps, Ukraine’s President Volodymyr Zelensky requested armaments and air defences to quickly take the upper hand in a conflict with Russia.
However, efforts to enlist the support of the Global South for Ukraine were less successful, with five developing nations that were invited to join the rich country club signing only a tepidly worded statement praising democracy’s “courageous defenders” without specifically mentioning Russia’s invasion of Ukraine.
At a time when mounting inflation and energy shortages—caused by Russia’s invasion—have taxed the West’s sanctions determination, the G7 leaders’ own statement attempted to show that its members were prepared to support Ukraine for the long haul.
According to the statement, “We will continue to offer financial, humanitarian, military, and diplomatic help while standing with Ukraine for however long it takes.“
The G7 nations stated that they were also prepared to provide Ukraine with up to $29.5 billion in funding.
GOING AFTER PUTIN’S PROFITS
Moscow denied the claim made by the White House on Monday that Russia had defaulted on its foreign sovereign bonds for the first time in a century. The G7 countries, which account for roughly half of global economic production, want to put further pressure on Russia without fueling an inflation that is already out of control and wreaking havoc in the Global South and at home. Additionally, the sanctions would target Moscow’s military production, its officials placed in Ukrainian territory under Russian control, and its source of income from gold exports.
The restriction on oil prices is intended to reduce energy prices while also hurting Russian President Vladimir Putin’s war fund.
On the fringes of the G7 conference, a U.S. official stated that the G7 leaders’ “twin aims” were to “take direct aim at Putin’s revenues, notably through energy,” as well as to “minimise the spillovers and the impact on the G7 economies and the rest of the world.”
RISE IN SANCTIONS ON RUSSIA
The revelation that Russia had defaulted on its foreign sovereign bonds for the first time since the Bolshevik revolution in 1917, according to a U.S. official, demonstrated the effectiveness of Western sanctions. The Kremlin, which has the resources to make payments due to abundant energy income, promptly dismissed the American statement and charged that the West had intentionally caused it to go into default
The United States announced that in addition to the more than 1,000 people and entities already under penalty, it would also apply penalties against hundreds more, target businesses in many nations, and put tariffs on thousands of Russian goods. The climate change dilemma, which was supposed to take centre stage during the summit, has been overshadowed by the Ukraine situation. As Western countries scurry to find alternatives to Russian gas supplies, activists worry that they are watering down their climate objectives by relying more heavily on coal, a dirtier fossil fuel.
A target for zero-emission automobiles is also being pushed out of a G7 declaration that is anticipated this week by Japan.
Featured Image: Flickr
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