On the account of the “war of aggression” by the Russian government, the leaders of rich democracies across the globe have decided to put caps on the abominable energy prices to curb Russian revenues at the G7 summit. On Tuesday, 28th June 2022, G7 leaders pledged to ease the economic pressure on Ukraine. Held in the Bavarian Alps, Germany, this meeting also concluded to help the needy and provide financial, humanitarian, and military support for Ukraine “for as long as it takes”.
The Price Cap Idea
To prevent Russia profiting from the “war of aggression” against Ukraine, G7 leaders promised in a communiqué to look for ways to reduce the hydrocarbon revenues thereby minimizing the negative high-priced effects on low and middle-income countries. They also introduced possible caps on energy imports in Russia. This summit was held to fight against the toll the Ukraine war is taking and how Moscow is availing of energy-price benefits despite G7 restrictions on imports.
Olaf Scholz, the German chancellor hosted this meeting and appreciated the ambitious idea that could help the vulnerable countries from the aggression at the expense. “It will need a lot of work,” he said at a post-summit press conference. Scholz added that the G7 summit has sent the message of “unity and determination to confront Russia’s aggression” and restricted it from endangering the security and stability of other countries because of rising energy prices.
Main Outcomes and Urgency of Time
According to chancellor Scholz, the main purpose of this summit was to become a pillar for Ukraine with the economic support of $29bn and humanitarian aid worth $2.8bn as well as allotting a new “Marshall Fund”. It pledged a joint effort to end global hunger and lastly assured a commitment to combating climate change. Along with the budgetary support to Ukraine, the scheme of possible price caps enabled restrictions on the transportation of seaborne oil from Russia.
Speaking about the scheme, G7 leaders said that evaluating the feasibility of price caps would be a highly complex task and need intensive work. They also agreed on the fact that this matter of urgency would face challenges at the European Union (UN) too. However, to end the economic and political terror by Russia, G7 has taken a great initiative that would surely benefit Ukraine as well as other countries fighting against economic odds.