US President Joe Biden expects G7 leaders to discuss steps to “stabilize global energy markets” as Washington seeks more co-operation to tackle high commodity prices that weigh heavily on the global economy.
A senior Biden administration official told reporters Wednesday that the United States will announce a “concrete set of proposals” to increase economic pressure on Russia over its war in Ukraine, hinting at a possible package of sanctions when G7 leaders gather in Germany this weekend.
The United States also expects energy prices, which have risen since the start of the war in February as countries struggled to reduce their dependence on Russian imports, to be “very much in the spotlight,” the official added.
“[We] I expect [G7 leaders] to talk about how we can take steps to further reduce Russia’s energy revenues, and do so in a way that stabilizes global energy markets and reduces the disruption and pressure we have seen, “said a senior Biden administration official.
The United States has banned Russian energy imports and backed the EU’s efforts to limit its own dependence on the country’s oil and gas. But U.S. officials are concerned that some of the measures, including an EU ban on insuring Russian oil cargo, could be counterproductive, lead to a sharp rise in prices that fills Moscow’s coffers and creates economic and political spillovers to the West.
The United States is discussing possible solutions with the EU and the G-7, such as price caps and tariffs on Russian oil, but there is no agreement on new measures. Biden is focusing on domestic energy prices, including a call Wednesday for Congress to suspend gasoline taxes for three months.
Biden’s trip to the G7, to be held at the Schloss Elmau in the Bavarian Alps, will begin with a bilateral meeting between US President Olaf Scholz, the German chancellor and host of the meeting. Vladimir Zelensky, Ukraine’s president, is also expected to speak to the group virtually.
Senior US officials said food security would also be high on the agenda, given rising prices and the supply chain crisis, as well as enhanced cooperation in the approach to China.
The G7 summit comes ahead of next week’s NATO summit in Madrid, where the transatlantic military alliance must approve a new “strategic concept”, a document outlining its mission, which was last updated in 2010. For the first time, the document will consider how the alliance views China’s efforts to expand its military reach.
“Russia is clearly still the most serious and immediate threat to the alliance, but the strategic concept will also address the multilateral and long-term challenges posed by [People’s Republic of China] for Euro-Atlantic security, “said a senior administration official.
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The NATO summit will include leaders from the Asia-Pacific region for the first time, including South Korea, Japan, New Zealand and Australia, to highlight the alliance’s long-term focus on China.
There will also be a announcement of new commitments for the armed forces “to strengthen NATO’s defense and deterrence,” the official said. The United States has about 100,000 troops in Europe, compared to 70,000 before Russia’s invasion of Ukraine. NATO has 40,000 troops in Eastern Europe under its direct command.
Biden officials declined to say whether they expected progress in efforts to allay Turkey’s concerns over Finland’s and Sweden’s NATO bids, but noted that US Secretary of State Anthony Blinken and National Security Adviser Jake Sullivan were talked to their Turkish counterparts in recent days to try to make progress.
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