G7 weighs sanctions and tariffs on Russian oil buyers as U.S. pressures China and India

Finance ministers from the Group of Seven discussed new sanctions on Russia and tariffs on countries buying its oil, as the U.S. urged allies to ramp up economic pressure.

Finance ministers from the Group of Seven held a call on Friday to explore further measures aimed at curbing Russia's military operations in Ukraine. The meeting, chaired by Canadian Finance Minister Francois-Philippe Champagne, focused on sanctions enforcement and potential new tariffs targeting countries that are viewed as supporting Russia's war effort by purchasing its oil.

A statement from the Canadian government said the ministers agreed to accelerate talks on utilising frozen Russian sovereign assets to fund Ukraine’s defence. The group also discussed a range of additional economic tools, including sanctions and trade measures, that could penalise countries enabling Russia’s wartime economy.

U.S. Treasury Secretary Scott Bessent urged his G7 counterparts to join Washington in levying tariffs on countries that continue to import Russian oil. "Only with a unified effort that cuts off the revenues funding Putin's war machine at the source will we be able to apply sufficient economic pressure to end the senseless killing," Bessent said in a joint statement with U.S. Trade Representative Jamieson Greer.

The U.S. Treasury separately called on the G7 and European Union to impose “meaningful tariffs” on goods from China and India to pressure them to stop purchasing Russian crude.

President Donald Trump, who has already increased tariffs on Indian imports to a total of 50%, has not yet expanded such measures to Chinese goods. His administration is maintaining a fragile trade balance with Beijing amid ongoing talks.

Bessent is travelling to Madrid for another round of talks with Chinese Vice Premier He Lifeng. The discussions will address trade relations, the U.S. push for a forced divestment of TikTok, and anti-money laundering concerns.

Trump, speaking on Fox News earlier Friday, expressed growing impatience with Vladimir Putin but stopped short of announcing new sanctions. While acknowledging sanctions on banks and oil remain possible, he emphasised that Europe must also intensify its pressure campaign. "We're going to have to come down very, very strong," he said.

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