G7 Summit Opens... Biden: "Ban on Russian Gold Imports, Infrastructure Investment to Counter China"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The Group of Seven (G7), including the United States, will impose additional sanctions banning gold imports from Russia, which invaded Ukraine. Alongside this, the G7 will invest $600 billion (approximately 777.6 trillion KRW) in global infrastructure to counter China's Belt and Road Initiative.

On the 26th (local time), U.S. President Joe Biden posted on his Twitter account, "The G7 will jointly announce a ban on gold imports from Russia," adding, "Gold is a significant export resource that brings billions of dollars to Russia." Gold is Russia's second-largest export resource after energy. As of 2020, Russia's gold exports accounted for 5% of the global market, amounting to $19 billion.

President Biden, who visited Germany on the same day to attend the summit, emphasized alliance unity, stating, "Russian President Vladimir Putin hoped in any way that NATO and the G7 would be divided, but we have not been, and we will not be in the future."

From the 26th to the 28th, the G7 summit held at Elmau Castle in Bavaria, Germany, will discuss additional sanctions against Russia, including the ban on Russian gold imports. Local media reported that the U.S. proposed setting an international price cap on Russian crude oil. This measure aims to prevent Russia from benefiting from rising oil prices by reducing supply.

[Image source=EPA Yonhap News]

Additionally, President Biden announced that as an alternative to China's Belt and Road Initiative, the G7 will invest $600 billion in global infrastructure such as buildings, networks, and healthcare systems by 2027. Ports, railways, and power grids are also included. Bloomberg News reported, "The U.S. will support $200 billion," but noted that "details such as the division of private and public sector funding remain unclear."

The G7 summit is a forum for leaders from the United States, the United Kingdom, France, Germany, Italy, Canada, and Japan. Olaf Scholz, Chancellor of Germany and chair of the G7 summit, said at a press conference after the first meeting discussing the global economic situation, "All member countries are concerned about the state of the world economy and are determined to improve it comprehensively," adding, "Our shared worldview, belief in democracy, and the rule of law unite us." The meeting reportedly focused mainly on the sharp rise in energy prices and supply chain issues caused by the war in Ukraine.

Germany invited leaders from India, Indonesia, Argentina, South Africa, and Senegal to this summit. Ukrainian President Volodymyr Zelensky also accepted Chancellor Scholz's invitation and is scheduled to meet virtually with G7 and invited country leaders on the 27th.