G20 leaders adopt declaration on first day of summit

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Leaders of the G20 nations attend the second working session of the G20 Leaders’ Summit at Bharat Mandapam in New Delhi on September 9, 2023. (AFP)
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India’s Prime Minister Narendra Modi addresses the second session of the ‘One Family’ of the G20 summit in New Delhi. (Twitter)
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Updated 09 September 2023
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G20 leaders adopt declaration on first day of summit

  • Consensus comes as a surprise as the group is deeply divided over the war in Ukraine

NEW DELHI: The Group of 20 nations adopted a consensus declaration on the opening day of a summit on Saturday that avoided condemnation of Russia for the war in Ukraine but called on all states to refrain from the use of force to seize territory.

Prime Minister Narendra Modi of host India announced that the declaration had been adopted on the first day of the weekend summit.

The consensus came as a surprise as the group is deeply divided over the war in Ukraine, with Western nations earlier pushing for strong condemnation of Russia in the Leaders’ Declaration, while other countries demanded a focus on broader economic issues.

“We call on all states to uphold the principles of international law including territorial integrity and sovereignty, international humanitarian law, and the multilateral system that safeguards peace and stability,” the declaration said.

“We ... welcome all relevant and constructive initiatives that support a comprehensive, just, and durable peace in Ukraine.

“The use or threat of use of nuclear weapons is inadmissible,” the statement added.

The declaration also called for the implementation of the Black Sea initiative for the safe flow of grain, food and fertilizer from Ukraine and Russia. Moscow pulled out of the agreement in July over what it called a failure to meet its demands to implement a parallel agreement easing rules for its own food and fertilizer exports.

“On the back of the hard work of all the teams, we have received consensus on the G20 Leaders Summit Declaration. I announce the adoption of this declaration,” Modi told the leaders in New Delhi, including US President Joe Biden and heads of government and state from across the world.

The differing views on the war had prevented agreement on even a single communique at ministerial meetings during India’s G20 presidency so far this year.

The declaration said the group agreed to address debt vulnerabilities in low and middle-income countries “in an effective, comprehensive and systematic manner,” but did not make any fresh action plan.

It said countries pledged to strengthen and reform multilateral development banks, while it accepted the proposal for tighter regulations of cryptocurrencies.

It also agreed that the world needs a total of $4 trillion of low-cost financing annually for the energy transition, with a high share of renewable energy in the primary energy mix.

The statement called for accelerating efforts toward a phasedown of unabated coal power, but said this had to be done “in line with national circumstances and recognizing the need for support toward just transitions.”

DESERTED STREETS

At the start of the day, Biden and other leaders were driven through deserted streets to a new, $300 million conch-shaped convention center called Bharat Mandapam, opposite a 16th-century stone fort, for the summit.

Many businesses, offices and schools have been closed in the city and traffic restricted as part of security measures to ensure the smooth running of the most high-powered meeting to be hosted by the country. Slums have been demolished and monkeys and stray dogs removed from the streets.

Earlier in the day, Modi inaugurated the meeting by calling on members to end a “global trust deficit” and announced that the bloc was granting permanent membership to the African Union in an effort to make it more representative.

“Today, as the president of G20, India calls upon the entire world to first convert this global trust deficit into one trust and one confidence,” he said. “It is time for all of us to move together.”

Despite the compromise over the Leaders’ Declaration, the summit had been expected to be dominated by the West and its allies. Chinese President Xi Jinping is skipping the meeting and has sent Premier Li Qiang instead, while Russia’s Vladimir Putin will also be absent.

Biden, German Chancellor Olaf Scholz, French President Emmanuel Macron, British Prime Minister Rishi Sunak, Saudi Arabia’s Mohammed Bin Salman and Japan’s Fumio Kishida, among others, are attending.

“It’s incumbent upon the Chinese government to explain” why its leader would or would not participate, Jon Finer, the US deputy national security adviser, told reporters in Delhi.

He said there was speculation that China is “giving up on G20” in favor of groupings like BRICS, where it is dominant.

BRICS includes Brazil, Russia, India, China and South Africa, and has agreed to add another six new members — Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates — accelerating its push to reshuffle a world order it sees as outdated.

Russia is being represented by Foreign Minister Sergei Lavrov, who had said he would block the final declaration unless it reflected Moscow’s position on Ukraine and other crises.

Russia’s 2022 invasion of Ukraine has left tens of thousands of dead, displaced millions and sown economic turmoil across the world. Moscow denies committing atrocities during its conflict with Ukraine, which it terms a “special operation” to “demilitarize” its neighbor.

In the absence of an agreement on the declaration, India would have had to issue a chair statement, which would mean that G20 for the first time in 20 years of summits would not have had a declaration.


Russia diverts its naphtha from Oman due to Middle Eastern crisis, data shows​

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Russia diverts its naphtha from Oman due to Middle Eastern crisis, data shows​

  • Strikes have disrupted energy production and shipping, including naphtha loadings and discharges
  • Since the European Union’s full embargo on Russian oil products took effect in February 2023, most Russian naphtha has been directed to the Middle East and Asia

MOSCOW: Russia has diverted its naphtha cargoes from Oman amid the Middle East crisis as it looks for new buyers, traders said and LSEG data showed, with at least one tanker now heading for Singapore.
Iran’s strikes on Gulf countries in retaliation for Israeli and US strikes against it have disrupted energy production and shipping, including naphtha loadings and discharges.
Since the European Union’s full embargo on Russian oil products took effect in February 2023, most Russian naphtha has been directed to the Middle East and Asia.
Middle Eastern countries are also the top ⁠supplier to Asia ⁠with the recent disruption forcing Asia’s naphtha margin to four-year highs, while at least one South Korean naphtha cracker operator was considering declaring force majeure and another has cut its operating rate by around a fifth.
The Liberia-flagged tanker, Amfitrion, which loaded in February in the Russian Black Sea ⁠port of Novorossiysk destined for Oman, last week halted navigation near the Gulf of Masira and on Tuesday turned for Singapore, according to LSEG data.
Five middle-sized tankers carrying a total 180,000 metric tons of naphtha in January departed Russian ports for an offshore STS (ship-to-ship) berth near Oman’s Shinas, shipping data showed. The final destination of these cargoes remains unknown.
According to data from LSEG and traders, Russia also sent two cargoes to Oman’s Sohar in November-December, ⁠carrying a total ⁠of 190,000 tons of naphtha as its other markets dried up.
India and Taiwan were among the main Asian buyers of Russian naphtha, but recent US sanctions have prompted both countries to pull back. Exports to Venezuela have also fallen to zero this year after US President Donald Trump in December ordered a blockade on all sanctioned oil tankers entering or leaving the Latin American country.
Though Asian buyers face naphtha shortages, Western sanctions could force traders to shun Russian cargoes. The long navigation from Russia’s Baltic ports to Asia also prevents prompt shipments, market sources said.