The Group of Seven faces economic challenges, in particular inflation and stagnation

G7 leaders discuss how to tackle high inflation and avert the threat of recession on the opening day of their meeting in the Bavarian Alps, as well as how to keep pressure on Russia to invade Ukraine.

With the war in course approximately 1,200 kilometers (746 miles) east of Schloss Elmau, where the summit is held, German Chancellor and guest Olaf Scholz will lead talks on tackling climate change, infrastructure and investment.

Schultz said the leaders discussed the current energy crisis and the inflation boom in detail, which everyone agreed was a cause for concern, and that they were determined to take risks to their economies. “in coordinated way “.

“Low growth rates in some countries, inflation in increase, the scarcity of materials prime and disruption of supply chains are no small challenges, “Schulz told reporters during a break in talks.

“That’s why we have to take responsibility together, but I’m very optimistic that we will be in able to send a clear signal of unity and decisive action from this summit, “he continued.” The fact that we are united means that we can take risks in coordinated way and that we can mobilize investments and supply chains together “.

The leaders of the club wealthy nations will discuss a possible cap on Russian oil prices during the 3-day summit, although many details of the complex mechanism remain unsolved. The UK, US, Japan and Canada are planning to unveil a ban on new gold imports from Russia, which Britain says would have a “significant impact” on President Vladimir Putin’s ability to finance his military. .

While France is not against the US proposal for a cap on oil prices, it wants a broader discussion with oil producers, according to a senior French official. The official, who asked not to be named, added that EU sanctions have a stronger impact on Russia than imposing a possible oil price cap, according to Bloomberg, which was seen by Al Arabiya. .net.

The official said G7 leaders would present a discussion on the evolution of nuclear talks with Iran and added that Iranian production should be part of the oil price discussions.

According to people familiar with the discussions, G7 negotiators known as Sherpas had what one official described as “intense” speeches on the Russian oil roof ahead of the summit.

This pricing mechanism would set a cap on oil imports from Russia, which would be imposed unilaterally by each participating country and would prevent Russia from selling at a higher price.

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