The main factors influencing the markets this week will be the default of Russia, the increase in oil and gas production by the G7 countries and $ 600 billion in investments in the world economy

A meeting of G7 leaders is being held in Germany to discuss Russia’s war against Ukraine and the economic crisis it has caused, which will dramatically slow down the development of the world economy and increase inflation.

G7 leaders insist on increasing investment in fossil fuels, especially oil and gas, given their declining supplies from Russia. However, some countries at the UN COP26 pledged to suspend funding for international fossil fuel projects to reduce emissions, so a joint declaration on “investing in fossil fuels only for a period until the end of the energy crisis” is being discussed. ». The Prime Minister of Italy Mario Draghi stated the need for short-term investment in the gas infrastructure of developing countries, which can then be converted to use hydrogen.

G7 members are also working to tighten sanctions against Russia and limit Russian oil prices. Britain, the United States, Canada and Japan have banned the import of Russian gold in order to increase sanctions on Russia and stop funding aggression against Ukraine. This decision was supported by France.

As a result of sanctions that made it impossible to make payments to foreign creditors, Russia defaulted on sovereign debt in foreign currency for the first time since 1918, as the period of payment of interest on bonds in the amount of $ 100 million ended on June 26. Although for months Russia has found ways to circumvent the sanctions imposed through aggression against Ukraine. A technical default on interest payments will soon lead to defaults on other payments, which will accelerate the fall of the aggressor country’s economy.

In addition, G7 leaders have pledged $ 5 billion in private and public funding over 5 years to fund developing countries’ infrastructure and counter China’s multi-trillion One Belt, One Road project.

In the final statement of the summit, the leaders of the G7 countries plan to announce their commitment to support Ukraine indefinitely in the fight against Russian aggression. “We will provide financial, humanitarian, military and diplomatic support to Ukraine as much as necessary,” the statement said.

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