Topline
The Group of Seven nations (G-7) outlined plans for the reconstruction of Ukraine, resolving the global food security crisis, securing energy supply and tackling climate change as a two-day summit of the countries’ leaders in Germany concluded on Tuesday.
German Chancellor Olaf Scholz (SPD) speaks at a press conference at the end of the G-7 summit at … [+]
Key Facts
In a summary of its official communiqué issued after the summit, the G-7 reaffirmed its support for Ukraine’s “courageous” defense of its “sovereignty and territorial integrity” and vowed to punish Russia further by coordinating more sanctions and reducing its revenue from energy exports.
The G-7 nations pledged a total of $29.5 billion in financial aid for Ukraine’s reconstruction in 2022, plans for which will be made in partnership with Kyiv through an international reconstruction conference.
Blaming Russia’s invasion for steep energy prices around the globe, the leaders said they will take immediate steps to secure energy supply and reduce dependency on Russia without compromising on existing climate goals.
The alliance made up of the world’s seven largest advanced economies including, the U.S., Canada, the U.K., France, Germany, Italy and Japan, also announced plans to establish a “Climate Club” to help with the implementation of goals outlined under the Paris Agreement—which aims to limit the long-term rise in global temperature to 1.5 degrees celsius.
A total of $4.5 billion—$2.76 billion of which is from the U.S.— was also pledged to address the global food security crisis triggered by the invasion of Ukraine.
The G-7 once again called on Russia to end its blockade of Ukrainian Black Sea ports—which are needed to export food grains from Ukraine—and said sanctions will not target the export of food and agricultural products from Russia.
Crucial Quote
In a statement issued on Monday evening, the G-7 leaders “condemned the abominable attack on a shopping mall” in central Ukraine which has so far claimed 18 lives. “Indiscriminate attacks on innocent civilians constitute a war crime. Russian President Putin and those responsible will be held to account…We will not rest until Russia ends its cruel and senseless war on Ukraine.”
Tangent
Aside from Russia, the G-7’s official statement extensively mentions various geopolitical and economic disputes with China. It urges China to comply with international law with regard to its claims about the South China Sea, calls for a peaceful resolution of issues with Taiwan and urges it to honor commitments made with regard to Hong Kong’s autonomy. The statement also calls on China to pressure Russia to withdraw its troops from Ukraine. In its own press release about the issue, the White House notes that the G-7 will work a unified approach to tackle China’s “unfair economic practices.”
Key Background
A day earlier, the G-7 announced a raft of new measures designed to further punish Russia and its economy. This included potentially imposing a price cap on Russian oil that would prevent Moscow from benefiting from high energy prices. Other measures discussed included higher tariffs on Russian goods, restrictions on Russian gold exports and additional sanctions on Russian officials. In its own statement, the White House said it plans to use the estimated $2.3 billion raised from tariffs on Russian goods to help Ukraine. Additionally, the State Department will ban 500 Russian officials linked to the war effort from entering the U.S.
Further Reading
G-7 leaders wrap up summit meant to bolster Ukraine support (Associated Press)
G-7 Meeting to Conclude With Focus on China (Wall Street Journal)
Source: https://www.forbes.com/sites/siladityaray/2022/06/28/g-7-pledges-billions-to-help-ukraine-rebuild-and-reveals-plan-to-tackle-food-security-as-summit-ends/