Elmau Castle: World powers on Sunday ban Russia’s exports of gold in a new coordinated action to block Moscow’s financial lifeline as G7 leaders meet in southern Germany to block new support for Ukraine Agreed to do.
US President Joe Biden and his counterparts in the world’s most developed countries will meet at Elmau Castle in the Bavarian Alps and head to Madrid for a meeting with a NATO partner.
They aim to close the rank of support for Ukraine against Russia’s aggression while tackling the intensifying global collapse of the war.
From the surge in inflation to the impending energy shortage of the food crisis, Russia’s invasion of Ukraine is now in its fifth month and has plagued the world with a series of crises.
Leaders will also face the imminent threat of recession and pressure on climate change.
In demonstrating its determination to put great pressure on Moscow, the G7 is the second largest export to Russia and does not deny Russia’s gold imports, which the United States said was an important source of income for Vladimir Putin and its allies. Announced that it will be legalized.
According to the White House, Russia will account for about 5% of all gold exports in 2020, with 90% of Russia’s output directed to G7 countries, primarily the United Kingdom.
– ‘don’t give up’ –
Since Russia flooded Ukraine with troops on February 24, Western allies have been struggling to coordinate their response.
Putin’s army was digging their heels for the war that was pulled out, while they were hitting the Russian economy with unprecedented sanctions.
Prior to the meeting, British Prime Minister Boris Johnson urged allies not to shake their support.
“Ukraine can win and it will win, but we need our help to do so. Now is not the time to give up Ukraine,” he said. The UK announced an additional $ 525 million guarantee for World Bank loans later this year.
Ukrainian President Volodymyr Zelensky will do the same plea when attending via videolink on Monday.
John Kirby, a spokesman for the White House National Security Council, said the G7 aims to hold Russia accountable and increase the cost and consequences of the war against Putin and his economy.
At the same time, they aim to “minimize the effects of these rising oil prices and the energy-armed method of (Putin) as much as possible.”
The economic impact will be central to the opening session of the G7.
Only six months ago, the global economy was ready for a major post-pandemic recovery, but is now staring at the barrel of recession.
“The main problems that all of us have in mind” include “rising prices, supply chain disruptions, all exacerbated by this war in Ukraine.”
– Systematic rivals –
Frightened by Russia’s reliance on energy, which has prevented Putin from doing everything in its power to punish Russia, the G7 also looked carefully at China.
“China’s compulsory economic practices, the use of forced labor, and the effects of intellectual theft. These are all at the forefront of the G7, and I think China will be at the forefront as the G7 progresses.” increase. Kirby.
As the Gulf that separates the Western allies from Russia and China expands, the G7 also aims to bring other major players to that side.
To this end, German Chancellor Olaf Scholz has invited leaders from Argentina, India, Indonesia, Senegal and South Africa to the Alpine Summit.
Argentina and Indonesia voted for an important UN vote to blame Russia, but the other three abstained.
However, it has been directly hit by the impending hunger crisis caused by the stagnation of grain and wheat exports from Ukraine, for example India has imposed restrictions on wheat exports.