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 CTV News.
- Your comments may be used in a CTVNews.ca story.
IN DEPTH
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.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
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
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
"It's a bit of a complicated pattern; we've got a lot going on," said Jennifer Smith of the Meteorological Service of Canada in an interview with CTVNews.ca on Wednesday. "[As is] typical with weather, all of these things are related."
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
Police tangle with students in Texas and California as wave of campus protest against Gaza war grows
Police tangled with student demonstrators in Texas and California while new encampments sprouted Wednesday at Harvard and other colleges as school leaders sought ways to defuse a growing wave of pro-Palestinian protests.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Local Spotlight
Fergus, Ont. man feels nickel-and-dimed for $0.05 property tax bill
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
'I'm committed': Oilers fan won't cut hair until Stanley Cup comes to Edmonton
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
'It's not my father's body!' Wrong man sent home after death on family vacation in Cuba
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
'Once is too many times': Education assistants facing rising violence in classrooms
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
What is capital gains tax? How is it going to affect the economy and the younger generations?
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
UBC football star turning heads in lead up to NFL draft
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Cat found at Pearson airport 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.