G7 Finance Leaders Call for Economic Coordination, Signal Potential Sanctions on Russia

Finance ministers and central bank governors from the Group of Seven (G7) nations agreed to jointly tackle global economic imbalances and signaled openness to intensifying sanctions on Russia, following a three-day meeting in Banff, Canada.

Despite earlier uncertainty over whether a communique would be issued—amid tensions over U.S. tariffs and softening language on Russia’s war in Ukraine—the group reached consensus on key issues. The final statement, while omitting previous climate change commitments and strong language on Russia, emphasized economic cooperation and international security.

Canadian Finance Minister Francois-Philippe Champagne said the G7 reached “common ground” on pressing global challenges, framing the outcome as a show of unity.

The communique avoided naming China but expressed concern about “non-market policies and practices,” a phrase often used to criticize China’s state-driven economic model. It also acknowledged the rise in low-value cross-border shipments, calling for enhanced customs controls to combat illicit goods and tax evasion. Chinese platforms like Shein and Temu have exploited such exemptions.

On Russia, the G7 condemned its “brutal” war against Ukraine, stopping short of calling it illegal. They pledged to block any country financing Russia’s war from benefiting in Ukraine’s future reconstruction. Russia’s frozen sovereign assets would remain inaccessible until it pays for war damages.

A potential cut to the $60-per-barrel price cap on Russian oil was discussed but not included, with U.S. Treasury Secretary Scott Bessent reportedly unconvinced. Bessent kept a low profile during the meeting but was described by peers as constructive and flexible.

The meeting lays groundwork for the upcoming G7 Leaders Summit, where geopolitical and trade issues are expected to take center stage. The G7 reaffirmed its commitment to market stability, supply chain resilience, and fair global trade practices.