FX.co ★ G7 Targets Global Imbalances, Weighs More Sanctions on Russia

Finance ministers and central bank governors from the G7 nations have pledged their commitment to addressing "excessive imbalances" within the global economy, while also hinting at the potential for additional sanctions against Russia. In a statement released on Thursday, they underscored the necessity for a mutual understanding of how "non-market policies and practices" pose a threat to global economic security—implicitly referring to China's strategy of state subsidies and its export-centric economic model, although China was not explicitly mentioned. The communique called for an extensive examination of market concentration issues and the resilience of supply chains. "We concur on the significance of maintaining a level playing field and employing a broadly coordinated approach to mitigate the damage inflicted by entities that disregard established rules and lack transparency," the statement declared. European Commission Vice President Valdis Dombrovskis noted that discussions included the possibility of tightening sanctions on Russia, which could involve reducing the price cap on Russian oil from the current limit of US$60 per barrel.