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G7 Hiroshima Summit Announces New Sanctions on Russia

May 19th, 2023

In a significant development, leaders from the Group of Seven (G7) nations announced during the Hiroshima Summit their agreement to impose fresh sanctions on Russia, ensuring Ukraine receives the necessary budgetary support between 2023 and early 2024.

As early as the end of April, foreign media outlets had revealed G7′s deliberations on an “almost complete ban on exports to Russia.”

Addressing the issue, G7 leaders stated that the new measures would “prevent Russia from accessing G7 country technologies, industrial equipment, and services that support its war machine.” These sanctions include restrictions on exports of items deemed critical to the conflict and targeting entities accused of aiding the transportation of supplies to the front lines. Russia’s “Komsomolskaya Pravda” reported at the time that Dmitry Peskov, the press secretary for the Russian President, had said, “We are aware that the United States and the European Union are actively considering new sanctions. We believe that these additional measures will certainly impact the global economy and further escalate the risks of a global economic crisis.”

Furthermore, earlier on the 19th, the United States and other member countries had already announced their respective new measures of sanctions against Russia.

The ban includes diamonds, aluminum, copper, and nickel!

On the 19th, the British government issued a statement declaring the implementation of new sanctions on Russia. The statement mentioned that these sanctions targeted 86 individuals and entities, including major Russian energy and arms transportation companies. British Prime Minister, Mr. Sunak, had previously announced import bans on diamonds, copper, aluminum, and nickel from Russia.

Russia’s diamond trade is estimated at $4-5 billion annually, providing crucial tax revenues to the Kremlin. Reportedly, Belgium, an EU member state, is one of the largest buyers of Russian diamonds, alongside India and the United Arab Emirates. The United States, meanwhile, serves as the primary market for processed diamond products. On the 19th, as reported by the “Rossiyskaya Gazeta” website, the U.S. Department of Commerce prohibited the export of certain telephones, voice recorders, microphones, and household appliances to Russia. A list of over 1,200 restricted goods for export to Russia and Belarus was published on the Department of Commerce website.

The list of restricted goods includes instantaneous or storage water heaters, electric irons, microwaves, electric kettles, electric coffee makers, and toasters. Additionally, the provision of corded telephones, cordless telephones, voice recorders, and other devices to Russia is banned. Yaroslav Kabakov, Director of Strategic Development at the Russian Finam Investment Group, commented, “The EU and the United States imposing sanctions on Russia will reduce imports and exports. We will feel severe impacts within 3 to 5 years.” He further stated that G7 countries had developed a long-term plan to exert pressure on the Russian government.

Furthermore, as reported, 69 Russian companies, one Armenian company, and one Kyrgyzstan company have been subjected to the new sanctions. The U.S. Department of Commerce stated that the sanctions targeted the Russian military-industrial complex and export potential of Russia and Belarus. The sanctions list includes aircraft repair plants, automobile factories, shipyards, engineering centers, and defense companies. Putin’s response: The more sanctions and defamation Russia faces, the more united it becomes.

On the 19th, according to TASS News Agency, the Russian Foreign Ministry issued a statement in response to the new round of sanctions. They mentioned that Russia is working to strengthen its economic sovereignty and reduce dependence on foreign markets and technology. The statement emphasized the need to develop import substitution and expand economic cooperation with partner countries, who are ready for mutually beneficial cooperation without trying to exert political pressure.

The new round of sanctions has undoubtedly intensified the geopolitical landscape, with potential far-reaching consequences for the global economy and political relations. The long-term effects of these measures remain uncertain, raising questions about their effectiveness and potential for further escalation. The world watches with bated breath as the situation unfolds.