G7 leaders discuss cap on price of Russian gas to squeeze war funds
Group of Seven leaders considered a possible cap on the price of Russian gas exports on Monday as a way to put the squeeze on the funding for Vladimir Putin's war with Ukraine.
The rising price of oil has created a revenue boom for Russia as it continues its assault on the neighbouring country, undermining sanctions imposed by western countries -- including those represented by leaders at the G7 summit at Schloss Elmau, a resort in southern Germany.
Ukrainian President Volodymyr Zelenskyy held a two-hour meeting with G7 leaders at the start of the day. In a virtual appearance, he laid out what his country needs, including tougher sanctions to keep Putin from financing the war.
The leaders pledged in a statement to support Ukraine "for as long as it takes." Prime Minister Justin Trudeau announced new sanctions on 74 more individuals and businesses in Russia and Belarus on Monday, and more are expected to come on Tuesday.
Canadian government officials at the summit, who provided a briefing to media on the condition they not be identified, said a cap on the price of Russian oil could work to cut into the country's profits on a major source of revenue. They also acknowledged the details are still in the works.
Some market analysts doubt how effective a price cap on Russian oil would be, as enforcement by the G7 would likely depend on co-operation from India and China.
"It is questionable whether countries like India and China will agree to cease purchasing Russian oil, especially as it is trading at a significant discount on the global market price," Carsten Fritsch, a commodities analyst at Commerzbank, told The Associated Press.
India's Prime Minister Narendra Modi was invited to the G7 summit by the host, German Chancellor Olaf Scholz.
As of early June, the country of 1.4 billion people had bought nearly 60 million barrels of Russian oil this year, compared with 12 million barrels in all of 2021, according to Kpler, a commodities data firm.
At a photo session with the G7 and other leaders, Modi clasped Trudeau's hand enthusiastically as he approached. But later, in a one-on-one meeting, the tone was much more sombre.
The two would discuss the impact of Russia's war on Ukraine, democracy and human rights, Trudeau said as he sat down with Modi.
The leaders of the G7, which also includes the United States, United Kingdom, Germany, France, Italy and Japan, are expected to release their final consensus at the end of their summit on Tuesday.
They will then join others in Madrid for a NATO meeting to discuss the military implications of the conflict.
The conflict in Ukraine has been a running theme through Trudeau's meetings with world leaders in Germany, as well as last week at the Commonwealth Heads of Government Meeting in Rwanda.
"Canada is unwavering in the belief that Ukrainians deserve to live in peace," Trudeau said in a written statement that announced the new sanctions on Monday.
"Vladimir Putin and his regime have caused untold pain and suffering in Ukraine and across the world. Together, with our G7 counterparts, Canada is stepping up our continuous and co-ordinated pressure to bring about the end of Vladimir Putin's war of choice."
The new sanctions include six individuals and 46 entities linked to the Russian defence sector, 15 Ukrainians who support the Russian occupation of the country and 13 people linked to government and defence and two entities in Belarus.
The Canadian government also plans to bring in sanctions against state-sponsored disinformation and propaganda agents controlled by senior government officials, Trudeau said, in an attempt to counter Kremlin disinformation.
Canada will also ban the export of advanced technologies that would improve Russia's domestic defence manufacturing capabilities.
Trudeau also announced that Canada, along with the United States, United Kingdom and Japan, will ban the import of certain gold goods from Russia, shutting the commodity out of formal international markets.
Russia was poised to default on its foreign debt on Sunday for the first time since the 1917 Bolshevik Revolution, further alienating the country from the global financial system.
Russia calls any default artificial because it has the money to pay its debts but says sanctions have frozen its foreign currency reserves held abroad.
In his meeting with G7 leaders, Zelenskyy said he wanted to see an end to the war by winter and deny Russia victory, Canadian officials said in the briefing, but the Ukraine president didn't elaborate on what he hopes that will look like, or what kind of truce he might settle for.
He also urged the leaders to begin planning for the eventual reconstruction of the Ukraine communities and infrastructure that have been destroyed by Russian bombings and fighting.
Russia announced its own set of new sanctions against Canada on Monday, targeting 43 Canadians including the prime minister's former adviser Gerry Butts, former Bank of Canada governor Mark Carney and Conservative strategist Jenni Byrne.
Before the meeting, Trudeau and Scholz spoke during a walk from the manor building, or schloss in German, down to one of the meadows, nestled between the building and the mountain view.
"We are … cautious that we will help Ukraine as much as is possible, but that we also avoid that there will be a big conflict between Russia and NATO," Scholz told the media during a photo op with Trudeau.
The night before, in Ukraine's capital city Kyiv, weeks of general calm were shattered by Russian missile strikes. The missiles hit a kindergarten and a residential building, killing one man and injuring a woman and child, the city's mayor said.
This report by The Canadian Press was first published June 27, 2022.
-- With files from The Associated Press
____
Get in touch
Do you have any questions about the attack on Ukraine? Email dotcom@bellmedia.ca.
- Please include your name, location, and contact information if you are willing to speak to a journalist with ۴ý.
- Your comments may be used in a CTVNews.ca story.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Canada will cut its permanent immigration levels by at least 20 per cent
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, ۴ý confirmed Wednesday.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
Trudeau says Liberals 'strong and united' despite caucus dissent
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
'Canadians can breathe a sigh of relief': Bank of Canada governor on interest rate cut
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Canada's discount airline is suspending operations to and from Saskatoon.
A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.
Local Spotlight
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
A meteor lit up our region's sky last night – with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.
Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.
A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.
The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that – and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.