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G7 finance ministers vowed to crank up sanctions on Russia if it does not make progress towards peace with Ukraine, in a show of support for Kyiv after the US signalled it may pull back from trying to resolve the conflict.
In a communiqué released after a three-day summit in the Canadian town of Banff, G7 finance ministers and central bank governors pledged their “unwavering support” for Ukraine and vowed to explore all options “to maximise pressure” on Moscow if a ceasefire is not reached quickly.
However, in the wake of US President Donald Trump’s aggressive tariffs, the summit yielded little progress on ways to end his trade war.
The G7 meeting was held against a backdrop of international tensions over Trump’s tariffs and growing fears that Washington could walk away from supporting Kyiv amid the ongoing war with Russia.
G7 finance ministers used the communiqué to set out commitments to keep certain Russian assets frozen, and support private sector investment in Ukraine.
They said if a ceasefire was not agreed between Russia and Ukraine, “we will continue to explore all possible options, including options to maximise pressure such as further ramping up sanctions”.
Some officials expressed surprise that Washington had agreed to the communiqué, which comes days after a phone call between Trump and Russian President Vladimir Putin stoked fears the US was preparing to abandon its efforts to secure a ceasefire in Ukraine.
Trump said on Monday following his two hour conversation with Putin that the “conditions” for a deal could only be agreed by the warring parties.
Meanwhile, the G7 ministers’ commitment in the communiqué to work together to boost economic growth and address “excessive imbalances” in global trade appeared a relatively weak response to Trump’s “reciprocal” tariffs, which roiled financial markets after he unveiled them on April 2.
So far, only the UK has finalised any relief from Trump’s tariffs through a deal, although the US and China agreed a ceasefire in their trade war this month.
The G7 ministers said they recognised that “elevated uncertainty” could have implications for the global economy and financial stability, and that they would “continue to monitor and consult closely on these matters”.
They made no direct reference to Trump’s tariffs and did not outline any measures to counter them.
Valdis Dombrovskis, EU economy commissioner, said trade had been a “difficult topic” at the summit and that Brussels would like to have seen “stronger language” on co-operation.
However, attendees described collegial talks with the US. Canadian finance minister François-Philippe Champagne, who chaired the G7 discussions, said the summit “demonstrates our shared resolve to work together at this crucial point in history”.
Dombrovskis said “these communiqués are always compromises” but added the statement in Banff was a “good” outcome.
