Economic News

Major Takeaways From The G7 Summit



The 48th G7 summit was held in Schloss Elmau, Krün, Bavarian Alps, Germany, on June 26-28, 2022. Seven of the world’s richest countries meet annually to discuss security, economic, and environmental issues. Boris Johnson, Olaf Scholz, Justin Trudeau, Emmanuel Macron, Mario Draghi, Fumio Kishida, and Joe Biden attended. After annexing Crimea, Russia has been barred from the G8 since 1998. First summit for Olaf Scholz and Fumio Kishida.


The summit discussed key themes as usual. G7 summit supported Ukraine, threatened anti-Russian penalties, and discussed climate. The three-day G7 conference resulted in more definitive support for Ukraine, greater political and economic pressure on Russia, better climate protection, and a call to China to respect human rights.

Germany, Britain, France, Italy, Japan, Canada, and the USA decided to intensify sanctions against Russia by barring Russian gold imports. Russian energy raw material price capping is also at risk.

The G7 expects China not to help Russia dodge sanctions, said German Chancellor Scholz. The group also urged Beijing to act judiciously in its disagreement with Taiwan, respect human rights not just in Tibet, Hong Kong, or Xinjiang province, and not utilize forced labor against its opponents.

PGII is a counterweight to China’s New Silk Road megaproject. Western countries regard the Belt and Road Initiative as Beijing’s attempt to gain influence in Asia and other continents. Over the next five years, the G7 will invest $600 billion in global infrastructure. Biden said.

Another hot topic was food safety. The G7 blames Russia’s invasion of Ukraine and blockade of Ukrainian grain exports for the present surge in food and fertilizer prices and the global food crisis.

The G7 will impose more restrictions on Russia, reducing its income, particularly from gold sales. They may also cap Russian oil prices. G7 officials say Russia’s aggressive assault against Ukraine is also to blame for rising food and fertilizer costs and the world’s food crisis. Monday, June 27th, Ukrainian President Volodymyr Zelenskyy videoconferenced with the statement.


Argentina, India, Indonesia, Senegal, and South Africa were also invited. Leaders decided to boost global collaboration. They will pursue new partnerships for a just energy change with Vietnam, Indonesia, India, and Senegal.

G7 sanctions, energy, and food agreements

G7 communique: “We will explore further measures to prevent Russia from profiting from its war of aggression. We will further reduce reliance on civil nuclear and related goods from Russia, including working to assist countries seeking to diversify their supplies. For oil, we’ll investigate a number of alternatives, including a possible global ban on transporting Russian seaborne crude oil and petroleum products unless it’s purchased at or below an agreed-upon price with foreign partners.”


“In coordination with the IEA, we will explore additional measures to reduce price surges and prevent further impacts on our economies and societies, in the G7 and global,” the communiqué read.


“We commit to an additional $4.5 billion to protect the most vulnerable from hunger and malnutrition, amounting to a total of over $14 billion as our joint commitment to global food security this year,” the G7 said. G7 summit communique: “We invite all like-minded countries to consider joining us in our actions.”

Peaceful Protest

Antiglobalists protested at prior G7 summits. 20 000 police were ready, but protests were minimal.

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