Finance ministers and central bank governors from the Group of Seven (G7) democracies have committed to tackling “excessive imbalances” in the global economy and indicated that they may impose additional sanctions on Russia.
The G7 revealed the plan on Thursday after meeting in the Canadian Rocky Mountains, emphasizing the need for a shared understanding of how “non-market policies and practices” threaten international economic security.
While the statement did not explicitly mention China, the United States and other G7 nations frequently direct criticism at China’s state subsidies and export-driven economic strategies when discussing non-market policies.
The final communique highlighted the importance of analyzing market concentration and strengthening the resilience of international supply chains.
“We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency,” it stated.
Regarding Russia, European Commission Executive Vice President Valdis Dombrovskis noted that G7 ministers considered additional sanctions aimed at ending the war in Ukraine.
One proposal discussed was lowering the G7-established $60-per-barrel price cap on Russian oil, as Russian crude is currently trading below this threshold.
The G7 denounced Russia’s “continued brutal war” in Ukraine and said that if ceasefire efforts failed, they would consider “further ramping up sanctions.”
The communique also confirmed that Russia’s sovereign assets held within G7 countries would remain frozen until Moscow ends the conflict and compensates Ukraine for the damage caused. However, it did not specifically mention the oil price cap.
Brent crude prices are currently around $64 per barrel.
A European official revealed that the US remains “not convinced” about lowering the Russian oil price cap.
Earlier this week, US Treasury Secretary Scott Bessent expressed his intention to urge G7 allies to prioritize rebalancing the global economy to shield workers and businesses from China’s “unfair practices.”
Additionally, the communique acknowledged a rise in low-value international “de minimis” shipments, which can strain customs and tax systems and be exploited for smuggling drugs and other illicit goods.
The duty-free de minimis threshold for packages valued below $800 has been abused by Chinese e-commerce firms such as Shein and Temu.
