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G-7 Latest: Russian Oil Cap, Gold Import Ban in Focus at Summit

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© Bloomberg. Fumio Kishida, Japan’s prime minister, arrives at Munich Airport ahead of the Group of Seven (G-7) leaders summit, in Munich, Germany, on Sunday, June 26, 2022. The G-7 leaders hold their summit in the Bavarian Alps starting Sunday hosted by Chancellor Olaf Scholz.
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(Bloomberg) — Group of Seven leaders will discuss a potential price cap on Russian oil during their three-day meeting in the Bavarian Alps that begins Sunday, even as many of the details of the complex mechanism remain unresolved.

The UK, the US, Japan and Canada also plan to use the summit at Schloss Elmau to unveil a ban on new gold imports from Russia, which Britain said will have a “huge impact” on President Vladimir Putin’s ability to fund his war in Ukraine.

Issues on Sunday’s formal agenda include the global economy, infrastructure and investment and foreign and security policy, while a number of bilateral meetings are also planned, including between German Chancellor and summit host Olaf Scholz and US President Joe Biden from 10:30 a.m. local time.

Key Developments

UK Says Ban on New Russian Gold Imports to Be Unveiled at G-7
G-7 Negotiators Put Russia Oil Price Cap on Agenda for Leaders
Scholz Targets Turnaround After Stumbling Start as German Leader
Germany Pushes for G-7 Reversal on Fossil Fuels in Climate Blow
Biden’s G-7 Allies Left Aghast at US Abortion Rights Reversal

(All times CET)

Russia Hours Away From Default (9:30 a.m.)

After months of teetering on the edge of default, Russia is now just hours away from a dramatic moment in the financial battle that the US and others have waged against the Kremlin over its invasion of Ukraine.

A grace period on about $100 million of missed bond payments — blocked because of wide-ranging sanctions — ends on Sunday night. There won’t be an official declaration, and Russia is already disputing the designation, but if investors don’t have their money by the deadline, there will be an “event of default” on Monday morning, according to the bond documents.

G-7 Sherpas Agree Leaders Should Discuss Oil Cap (9 a.m.)

G-7 negotiators known as sherpas held what one official described as “intense” talks on the Russian oil cap ahead of the summit, according to people familiar with the discussions.

Such a price mechanism would set an upper limit on imports of oil from Russia, which would be imposed unilaterally by each participating country and prevent Russia selling at a higher price.

Russian Gold Ban ‘Will Have Global Reach’ (8:30 a.m.)

Underpinned by London’s central role in the gold trade, the import ban on Russian gold “will have global reach, shutting the commodity out of formal international markets,” the UK said in a statement.

Shipments between Russia and London have collapsed to almost zero since sanctions were imposed on Russia for its invasion of Ukraine. The London Bullion Market Association, which sets standards for that market, removed Russian gold refiners from its accredited list in March.

©2022 Bloomberg L.P.

G-7 Latest: Russian Oil Cap, Gold Import Ban in Focus at Summit

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