G7 Finance Leaders Tackle Global Economic Imbalances and Russian Oil Price Cap

The finance ministers and central bank governors of the Group of Seven (G7) convened in the Canadian Rockies, vowing to tackle "excessive imbalances" in the global economy and to explore reducing the G7 price cap on Russian crude oil exports to $50 a barrel, according to a draft communique.

The ministers also discussed new sanctions on Russia to curb its war in Ukraine, with European Commission Executive Vice President Valdis Dombrovskis noting the current Russian crude price fell below the existing cap of $60 per barrel. The draft statement emphasized the need for analysis of market concentration and supply chain resilience.

Although the draft did not explicitly name China, references to "non-market policies" pointed towards Chinese subsidies and export-oriented strategies. Discussions also covered the impact of low-value package shipments, often exploited by Chinese e-commerce firms like Shein, a subject of concern regarding customs and illicit goods.

(With inputs from agencies.)