The G7 finance ministers have held discussions on introducing new sanctions and tariffs against countries and entities that continue to support Russia in its ongoing war in Ukraine. The talks, which form part of the bloc’s coordinated effort to increase pressure on Moscow, reflect the growing urgency among Western powers to curtail Russia’s access to funds and resources for sustaining the conflict.

Background of G7’s Sanction Strategy

Since the outbreak of the Ukraine war in February 2022, the G7—which includes the United States, United Kingdom, Canada, Germany, France, Italy, and Japan—has imposed some of the toughest sanctions ever seen against Russia. These include restrictions on oil exports, banking systems, technology transfers, and trade routes.

Despite these measures, Russia has managed to continue its military operations, largely due to support from partners outside the Western bloc. Countries purchasing discounted Russian oil, facilitating alternative payment systems, or supplying military and dual-use goods have been seen as indirectly enabling Moscow’s war effort.

New Discussions on Tariffs and Sanctions

During the latest meeting, finance ministers explored a wide range of economic measures, including:

• Targeted sanctions on companies and individuals involved in supporting Russia’s war.

• Tariffs on countries and entities trading with Russia in sectors like oil, gas, and military supplies.

• Financial restrictions to further isolate Russia from global banking systems.

Officials indicated that the discussions were not limited to Russia alone but also extended to those who facilitate “sanctions evasion networks”, such as intermediaries in Asia, the Middle East, and Africa.

Pressure on Russia’s Support Network

The G7 believes that by increasing costs for Russia’s allies and trading partners, Moscow’s ability to sustain its war economy will be reduced. Many of these partners help Russia bypass Western restrictions, especially in areas like oil refining, technology imports, and weapons supply chains.

Sanctioning these enablers, according to G7 members, is crucial to closing loopholes in the existing economic blockade.

Coordination Among Allies

One key focus of the discussion was ensuring that any new sanctions are coordinated globally. In the past, lack of alignment between the US, EU, and other countries allowed Russia to exploit gaps. By strengthening cooperation, the G7 aims to make sanctions more comprehensive and effective.

The ministers also highlighted the importance of working with developing economies, many of which have grown dependent on Russian energy and agricultural exports. The challenge remains to implement measures that pressure Russia without causing global supply shocks.

Russia’s Response and Global Implications

Moscow has repeatedly dismissed Western sanctions as ineffective, insisting that its economy has adapted. Russia has increased trade with China, India, and several Middle Eastern nations, using local currencies and alternative shipping routes to bypass restrictions.

However, analysts argue that the long-term damage to Russia’s economy is significant, with reduced access to Western capital, declining technology imports, and rising dependency on a limited group of partners.

If the G7 introduces secondary sanctions—penalising third parties trading with Russia—it could reshape global trade relations and put pressure on countries that have tried to remain neutral in the conflict.

Conclusion

The discussions among G7 finance ministers highlight the bloc’s determination to tighten economic pressure on Russia by expanding the scope of sanctions and tariffs to include not just Moscow but also its supporters.

While no final decision has been announced, the direction of the talks signals that new measures could soon be rolled out, further testing the resilience of Russia’s war economy and its global partnerships.

The Upcoming IPOs in this week and coming weeks are Karbonsteel Engineering, Taurian MPS, L. T. Elevator, Galaxy Medicare, Airfloa Rail Technology, Dev Accelerator, Jay Ambe Supermarkets, Urban Company, Shringar House of Mangalsutra, .

The Current active IPO are Nilachal Carbo Metalicks, Krupalu Metals, Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.