Russia-Ukraine war: Russia sanctions, Ukraine support on the agenda in G7 talks

Russia’s invasion of Ukraine is expected to be on the main agenda for the G7 countries. Sanctions on Moscow and continued support for Ukraine is expected to be a priority for the world’s major economies in the talks this year.

Japan’s top finance diplomat Masato Kanda told Reuters that the war in Ukraine would be on the main agenda for the G7 countries as its financial leaders meet for talks this year. Kanda, who will oversee the G7 deputy-level talks on economic policy, said that the G7’s priority would be further sanctions against Russia and continued support for Ukraine. Japan is the chair of the G7 countries this year.

Kanda, who is also Japan’s vice finance minister for international affairs, also cited the challenges that the G7 countries will have to tackle this year in an interview.

“As the global economy faces various risks, we must respond swiftly and appropriately to recession risks, financial market instability, sanctions against Russia, energy and food concerns, and middle-income countries’ debt problems,” said Kanda.

Kanda said Japan was working to help Sri Lanka – which is currently suffering its deepest economic crisis in 70 years – through coordinating with the Paris Club of creditor nations and the International Monetary Fund to ensure China and India’s participation in the efforts to restructure its debt.

Tokyo is also planning to separately lead discussions on a regional multilateral currency swap agreement known as the Chiang-Mai initiative Multi lateralization agreement to prepare for future financial crises and natural disasters, according to Kanda. The CMIM agreement was launched in 2000 as a network of bilateral swap accords following the 1997-1998 Asian currency crisis. By 2010, the CMIM was a multilateral scheme binding all countries.

On Thursday, Canadian defense minister Anita Anand announced that Ottawa would be sending four German-made Leopard 2 tanks to Ukraine, following the go-signal from Germany allowing other countries to send their Leopard 2 tanks. Other countries have also previously announced that they would be sending stocks of other types of tanks to Ukraine.

“This donation, combined with the contributions of allies and partners, will significantly help the armed forces of Ukraine,” as they push back against Russia’s aggression, Anand said.