According to reports, G7 nations (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) are considering a near-total ban on exports to Russia. The Japanese news outlet Kyodo reported on the matter, citing Japanese officials.
According to Bloomberg, the United States and Ukraine’s allies were reportedly mulling “an outright ban on most exports to Russia.” As per the report, G7 officials were debating the proposal ahead of a summit meeting scheduled for Japan next month.
Japan’s Chief Cabinet Secretary, Hirokazu Matsuno was questioned about Bloomberg’s report. However, Matsuno declined to comment on discussions among the G7 and other governments regarding potential further penalties against Russia.
To stop Russian aggression, Matsuno said that it is important for G7 nations to be united. Moreover, he stated that the block of countries should be united “for severe sanctions against Russia and strong support for Ukraine.”
G7 trade ban amid Russia moving to Chinese Yuan
Reports of Russia being banned from trade come amid the Russian bank, Sberbank, stockpiling on Chinese Yuan. Moreover, Sberbank CEO German Gref stated that demand for China’s national currency is increasing within Russia. However, if the G7 nations decide to enforce a total trade ban on Russia, it may lead to a further move towards de-dollarization. Russia is also developing special institutions to mine and transfer crypto across borders.
Furthermore, a total ban on trade with Russia might isolate the country from its BRICS counterparts. Most of the BRICS nations use the U.S. Dollar and have trade treaties with the United States. The move could put more pressure on Russia, and lessen the aggression in Ukraine. How the decision plays out if taken at all, is yet to be seen. Global trade is a complex machinery that is interdependent on various nations working together. A complete ban on Russia by G7 nations could also prove miscalculated.