At the annual G7 Summit in the picturesque region of Apulia, southern Italy, the leaders of the group spent considerable time discussing some of the most pressing issues. They included – Russia’s full-scale invasion of Ukraine, Israel’s offensive in Gaza’s Rafah and China’s growing economic clout.
In the intense meeting, the leaders of group of seven leading industrialised nations — US, UK, Germany, France, Japan, Canada, and the host country Italy — have vowed to step up pressure on Russia, expressed concerns over Israel’s expanding war and discussed ways to tackle the “oversupply from China”.
G7 Summit: 5 Big Takeaways
1 – Russian money for Ukraine
After much to and fro, the G7 finally agreed to use frozen Russian assets to raise $50 billion for Ukraine to help it fighting invading Russian troops.
This is a multi-year loan but Ukraine doesn’t have to repay. The frozen Russian funds will be used to repay these loan.
Ukraine will deploy this money broadly in two areas – to buy more weapons from the west and for the reconstruction efforts.
2 – US & Japan sign security pacts with Ukraine
The United States and Japan have got into long-term security commitments valid for up to 10 years. They entail almost everything that Ukraine needs.
Both the US and Japan have promised more defence equipment for Ukraine, more intelligence sharing training for Ukrainian soldiers, assistance to ramp up weapons production and humanitarian aid.
This pact is non-binding and therefore, there are no guarantees in terms of delivery. However, Ukrainian President Volodymyr Zelenskyy is happy and has called these agreements historic.
Zelenskyy said they will pave the way for Ukraine’s NATO membership.
Interestingly, Ukraine has similar agreements with other allies and so far, the country has signed at least 15 such pacts, but the promises made by the US and Japan stand out.
Zelenskyy said that the US has promised more lethal weapons to Ukraine including new squadrons of F-16 jets and Patriot missile systems.
Japan has assured of providing more financial aid to Ukraine and has outlined a commitment of $4.5 billion.
3 – G7 leaders step up pressure on Russia
The leaders of G7 have made a pledge to weaken Russia financially. For this, they have identified three targets: (i) strictly enforcing a price cap on Russian oil, (ii) restrict glow of funds towards future energy projects in Russia, (iii) clamp down on Russia’s metal trade.
The aim is to restrict Russia’s international trade and significantly reduce its revenues. To achieve this goal, the G7 will impose more sanctions and double down on enforcement.
4- G7 against ‘full-on’ Rafah offensive
The G7 leaders have sent some clear messages to Israel stressing that they are against a full-scale invasion of Rafah and don’t want the war to spill over especially to the north where Israeli forces are intensifying their operations against the Hezbollah in Lebanon but there is no movement on the ceasefire proposal and US President Joe Biden is blaming Hamas for the lack of progress.
5 – G7 challenges China
During the Summit, the G7 leaders also extensively discussed China and have also planned curbs on Chinese exports, particularly its electric vehicles (EVs).
Chinese cars are piling up on European ports. There is an oversupply from China, so the G7 wants to raise export barriers.
The G7 leaders have also warned Beijing against supporting Russia’s War. Ukraine’s Zelenskyy too have issued a warning to Chinese President Xi Jinping.
The G7 is also challenging China on another front. They will challenge China’s belt and road with their own counter initiative called Partnership for Global infrastructure and Investment.
This was announced in 2022 by G7 and the plan is to mobilise $600 billion. This amount will be used to fund development projects around the world.
At the Summit this year, some new initiatives have been announced which collectively are worth $30 billion. This money will fund a wide range of projects, covering areas like infrastructure, digital infrastructure, cyber security and climate change.
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G7 Summit 5 BIG takeaways: Russia-Ukraine conflict, Israel-Gaza war, China & more
