ISLAMABAD, June 26 (Alliance News): The leaders of the world’s seven major economies reaffirmed their support for Ukraine and agreed to a ban on gold exports from Moscow to cut off Russia’s financial lifeline.
According to foreign media report, US President Joe Biden and his counterparts from major industrialized countries of the world met at Elmo Castle in the Bavarian Alps before leaving for Madrid for talks.
The US president and his allies will pledge further support to Ukraine against the Russian invasion, while also working to deal with the escalating global consequences of the war.
Russia’s war against Ukraine, now in its fifth month, has been hitting global economic and food prices, hurting economic growth and boosting energy from rising inflation and the food crisis. Deficiency has plunged the world into more crises.
The heads of the world’s major economies will discuss issues such as the risks of an economic crisis and the growing pressure on climate change.
Increasing pressure on Moscow to find a solution to its problems, the seven major economies have agreed to impose sanctions on gold imports from Russia, the second largest exporter being the United States, led by the Russian president. It is an important source of revenue for Vladimir Putin and his allies.
According to the White House, in 2020 Russia accounted for 5% of total gold exports and 90% of Russia’s gold went to the G7 countries, especially the United Kingdom.
‘Don’t give up’
Since Russia launched a military strike in Ukraine on February 24, Western allies have been trying to coordinate their response.
However, they have imposed a number of sanctions to weaken Russia’s economy, and the Russian president’s forces have refused to withdraw.
Before talks began in Germany, British Prime Minister Boris Johnson urged all allies not to back down from supporting Ukraine.
“Ukraine can and will win the war, but to win the war they need our help and this is not the time to back down from Ukraine,” he said.
The United Kingdom has announced a further 52 525 million in guarantees for a World Bank loan later this year.
Ukrainian President Volodymyr Zelensky is also expected to attend Monday’s meeting via video link and ask for help.
White House National Security Council spokesman John Kirby said the G7 would continue to hold Russia accountable and increase the cost and consequences of the war against President Putin and his economy.
At the same time, their goal will be to minimize the effects of rising oil prices and the way Russia has turned energy into a weapon. The inaugural session of the G7 will focus on the economic crisis.
Just six months ago, the global economy was rapidly recovering from the Corona virus epidemic, but now the economy is heading for a crisis.
“The main problems we all have in mind are rising prices, disruptions to the global supply chain, which have been exacerbated by the ongoing war in Ukraine,” Kirby said.
The world’s major economies fear a reliance on Russian energy, which has made every effort to prevent several European countries, including Germany and Italy, from taking action against Russia, in which case the G7 is now looking to China for energy. And he sees this process as a ‘systematic revenge’.
John Kirby added that factors such as China’s forced economic practices, the use of forced labor and intellectual theft are at the center of the G7.
He said that as the gap between the Western allies and Russia and China widened, the G7 was now trying to include other major players.
German Chancellor Olaf Schulz has also invited the leaders of Argentina, India, Indonesia, Senegal and South Africa to the summit in the Alpine, while Argentina and Indonesia voted at the United Nations to condemn Russia for imposing war on Ukraine. However, the other three countries did not take part in the vote.
However, all these countries are directly affected by the growing crisis caused by the disruption of grain and wheat exports from Ukraine, for example, India has banned wheat exports.