Pledging new Russia sanctions, G7 to stand with Ukraine

STORY: G7 leaders pledged support for Ukraine on Monday (June 27) and agreed to hike sanctions on Russia, as the first working day of the summit got underway.

A White House fact sheet said the leaders would stand with Ukraine for “as long as it takes” by cranking up sanctions on Russia over its war in the country.

Adding that they would “continue to provide financial, humanitarian, military and diplomatic support.”

A senior U.S. official said the G7 leaders will commit to a new package of coordinated actions, meant to raise pressure on Russia on Tuesday.

As well as finalize plans for a price cap on Russian oil.

The statement came after Ukraine’s President Volodymyr Zelenskiy spoke to the leaders via video link.

He asked the leaders for a broad range of military, economic and diplomatic support, according to a European official.

Adding that he wanted the war to end by winter.

However, German Chancellor Olaf Scholz who is hosting the summit in Bavaria, urged caution over the sanctions.

“We are also cautious that we will help Ukraine as much as possible but also we will avoid a big conflict between Russia and NATO. This is essential, to be tough and to think about the necessities of the times we are living in.”

The White House also said Russia had defaulted on its foreign sovereign bonds for the first time in decades - an assertion Moscow rejects.

Sanctions have effectively cut Russia out of the global financial system.

But the war has created difficulties for countries way beyond Russia's borders, with curtailed food and energy supplies hitting the global economy.

These also include Ukrainian grain exports, now trapped in ports, which normally feed millions of people across the Middle East, Africa and elsewhere.

G7 leaders are expected to discuss options for tackling rising energy prices and replacing Russian oil and gas imports, as well as further sanctions that do not exacerbate inflation.