France Backs Russian Gold Ban Wants G7 Oil and Gas Price Shield
The G7 summit in the Bavarian Alps is being dominated by the war in Ukraine, which threatens global food and energy supplies. In a move that could further isolate Russia and tighten sanctions against the Kremlin, four G-7 nations have moved to ban Russian gold imports. This move is expected to slow Russia’s spiraling energy prices, which are already at an all-time high.
Russia is also facing pressure over the war in Ukraine, and the G7 countries are looking for ways to put more pressure on Moscow and limit the costs of living in the Western world. They are also likely to discuss options for coping with soaring energy and gas prices and replacing Russian oil imports. The G7 summit presents an opportunity for German Chancellor Olaf Scholz to demonstrate assertive leadership on the crisis.
France has also backed a proposal to ban Russian gold exports. The EU has yet to vote on the proposal. However, the French presidency said it had no problem with a cap on Russian oil costs. Instead, France wants the G7 to debate the issue in a more open environment. France’s backing for the proposed cap on Russian oil costs is an important sign of unity between the G7 in support of the Ukraine.
The three-day summit ended with a communique that was packed with controversial statements. The leaders promised to deliver $4.5 billion in food aid to developing nations and promise long-term support for Ukraine. At the end of the summit, the G7 leaders aimed to forge closer ties with the democracies in the Global South and show a united front against authoritarianism. In addition, Indonesia was invited to participate in discussions about global challenges.
After the G7 summit in Germany, the French and Russian governments are reportedly working together to implement further sanctions against Russia. A new report from the Yale School of Management shows that only 3% of Japanese companies have pulled out of Russia, but many more have suspended operations in the hope of resuming business in the future. While these are important developments, they will not solve the global economic crisis on their own.
The new measures will add more uncertainty to an already strained market. They could even lead to a spike in prices without Russia lifting its supply. This new policy could also open the door for friendly leaders to reach a deal with Moscow. It is unclear how long these new sanctions will last, but the EU will have to take action. The G7 is now attempting to prevent Russian oil imports by force.
Despite the recent increase in food prices, many people are still struggling with hunger. With the war in Ukraine, millions of tonnes of grain are not being shipped out of the country. Russia’s foreign ministry said that the move was a response to US sanctions. Meanwhile, Turkish President Recep Tayyyp Erdogan said that Finland and Sweden must deliver results in order to join NATO.