Inflation seen restraining Biden, other G7 leaders as they consider more Russia sanctions at summit


High inflation will limit President Joe Biden and leaders of other advanced economies as they consider new sanctions on Russia in response to its ongoing war against Ukraine, an expert said ahead of next week’s Group of 7 summit .

“Ukraine will grow, and the big question is whether this group will be able to push through sanctions,” said Matt Goodman, senior vice president of economics at the Center for Strategic and International Studies, a think tank. in Washington, DC

“There is some question as to whether President Biden will be willing to take on substantial new sanctions,” Goodman added, speaking at a CSIS press conference on Tuesday ahead of the upcoming G7 and NATO summits.

Existing sanctions “contribute to the inflationary pressures we face here in the US and the rest of the advanced world,” so it remains to be seen “whether there will be more efforts by this group,” he said. according to a CSIS transcript.

As G7 leaders take more action, they will likely consider measures that do not add to price increases, and this is where an Italian proposal could play a role, Goodman said. Italian Prime Minister Mario Draghi has proposed a new CL00 oil cartel.
-1.47%

BRN00,
-1.53%
consumers in an effort to limit prices.

It is unclear, however, how much enthusiasm there may be within the G7 for this idea, according to the CSIS expert.

Related: EU leaders agree to ban 90% of Russian oil by the end of the year

A senior Biden administration official told reporters on Wednesday that the administration would launch a specific set of proposals to increase pressure on Russia and show support for Ukraine, but gave no details.

The G7 summit is scheduled for Sunday to Tuesday in Schloss Elmau, southern Germany, and will be followed by the two-day NATO summit in Madrid, Spain. Biden is scheduled to leave for Germany on Saturday.

The US president “has a bit of a wind in his back, because he was able to mobilize this group of allies and partners to face the Russia-Ukraine challenge initially, but the question is whether he can advance the ball in these two meetings.” , Goodman. dit.

Now read: Biden calls for lower petrol tax, but analysts see major flaws in his plan and predict that Congress will not give its consent

See also: As Biden fights inflation, economists warn that weapons for this battle seem “extremely limited”



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