June 27, 2022
Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.President Joe Biden on Twitter. World leaders are currently meeting for the annual G-7 summit to discuss increased Russian sanctions, aid for Ukraine, improved global infrastructure, & more.
- Background: What is the G-7? Originally founded in 1975, the “Group of Seven” is an annual gathering of top leaders from the U.S., Canada, France, Germany, Italy, Japan, and the U.K. The summit has “developed into a platform for determining the course of multilateral discourse and shaping political responses to global challenges.”
- One of the first major announcements coming from the gathering was the decision to ban imports of Russian gold in order to further impact Russia’s financial state. Following energy exports, gold is the second-largest export for Russia.
- Looking ahead: The group is discussing other means of disrupting Russia’s financial state, including a potential price cap on Russian oil purchases to countries outside the G-7 alliance — meaning that Western countries who still get oil from Russia would not pay more than the yet-to-be-determined fixed price. Some European leaders are hesitant, however, because of potentially complex legal hurdles and possible ramifications if the price cap doesn’t hold; there is also the question of whether countries outside of the G-7 would agree to such a price cap.
- Why It Matters: The three-day summit provides an opportunity for world leaders to gather face-to-face and discuss a wide range of topics. The summit ends tomorrow; check back for more information as it becomes available.
G-7 set to back pursuing Russian oil price cap, tariff hikes (Associated Press)
by Jenna Lee,