President Joe Biden on Monday rallies western allies to a series of new sanctions on Russia ahead of Ukraine President Volodymyr Zelensky’s address to the G7

In advance of Ukrainian President Volodymyr Zelensky’s speech to the G7, President Joe Biden rallied the west’s allies on Monday in support of a slew of additional sanctions against Russia.

The most recent set of financial goals is intended to financially hurt Russian President Vladimir Putin and limit Moscow’s capacity to invade Ukraine.

Targets for Biden and his allies will include Russian defense enterprises, businesses that have benefited from Putin’s military industrial complex, organizations that have violated human rights, and organizations that have helped food from Ukraine be stolen.

They’ll also try to control the cost of Russian oil.

According to the White House, the steps are intended to “bring the kleptocracy to account for its illgotten profits” and “deprive Putin of the resources he needs to conduct his war.”

In their meetings on Monday, Biden and his counterparts from Canada, France, Germany, Italy, Japan, the United Kingdom, and the European Union will concentrate on Ukraine.

As the conflict approaches its fifth month, Zelensky will virtually address the leaders.

According to a White House fact sheet, the G7 leaders’ newest show of support will be the announcement of penalties that “aggressively target Russian defense supply chains by putting blocking measures on important state-owned defense businesses.”

Along with targeting corporations participating in Russia’s strategies to steal Ukrainian grain or otherwise benefit illegally from the war, G7 leaders will also apply penalties on those responsible for war crimes and other violations of human rights.

Additionally, more than 570 groups of Russian goods worth roughly $2.3 billion to Russia will be subject to higher tariff rates from the United States.

The G7 countries will also utilize the money they made from the increased tariffs they placed on Russian goods earlier this year to support Ukraine’s ongoing defense against Russian aggression.

The United States will also add a number of international corporations to the Entity List, preventing them from acquiring products and technologies with U.S. manufacturing origins, such as semiconductors, to advance their operations.

The latest wave of harsh penalties comes as Putin intensifies his conflict in the Ukraine. As friends gathered in Germany for the annual G7 meeting, his forces launched their first offensive on Kyiv in weeks.

According to reports, after missing a deadline on Sunday, Russia has defaulted on its foreign debt for the first time in more than a century, showing that the sanctions are having an effect.

The report was denounced by the Kremlin as “a farce.”
And Russia may face further financial difficulties in the future.

In an effort to lower the price of Russian oil, Biden will pressure the allies to create a global price ceiling. Russia’s primary source of income is oil.

On a briefing call with reporters on Monday, a senior administration official said, “The idea here is to starve Russia, starve Putin, of his main source of cash and drove down the price of Russian oil to help lessen the impact of Putin’s fight at the pump.”

On what the price cap might be and how it would be put into effect, there were no specifics provided.

The official indicated those would be the following actions.

In order to “take steps to discover how to design implement such a mechanism and again, develop and implement such a system with those two secured objectives square in mind,” the official stated, the G7 leaders will assign their personnel to collaborate with the business sector.

The greatest source of income for the country, Russian oil, is still being bought; China and India are filling the void left when the United States and its allies began to forbid Russian oil.

Despite a decline in sales, rising oil prices have helped Putin’s war to raise billions of dollars.

According to the Center for Research on Energy and Clear Air, Russia continues to earn $1 billion per day from its oil supply.

Prior to that, the US, UK, Canada, and Japan declared they would not allow the import of Russian gold, which is the country’s second-largest source of income after oil.

On Sunday, Biden posted on Twitter, “The United States has put extraordinary expenses on Putin to deny him the cash he needs to fund his war against Ukraine.”

The G7 will declare that they will collectively forbid the import of Russian gold, a significant export that brings in tens of billions of dollars for that country.

A number of sanctions have already been put in place by the West against Russian energy, luxury goods, and other products.

The effectiveness of those monetary sanctions is still in doubt, though.

The Center for Strategic and International Studies stated this month that “the short-term financial impact of the sanctions on Russia’s economy has been severe but appears to have diminished since May.”

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