German finance minister optimistic that G7 can agree joint communique on Ukraine support

Joachim Nagel (L), President of the Deutsche Bundesbank and Lars Klingbeil, Federal Minister of Finance and Vice Chancellor of Germany listen to a reporters question at a press briefing during the G7 Finance Ministers and Central Bank Governors’ Meeting in Canada on May 22, 2025. (AFP)
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Updated 22 May 2025
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German finance minister optimistic that G7 can agree joint communique on Ukraine support

  • “I am very positive that we will also reach a joint communique,” Klingbeil said
  • If Russia is not prepared to enter into serious negotiations with Ukraine, “we will consider further sanctions“

BANFF, Canada: German Finance Minister Lars Klingbeil on Thursday said he was optimistic that the Group of Seven advanced economies could agree a joint communique showing support for Ukraine, amid a rift between the US and the rest of the G7 on the issue.

Sources earlier said it was unclear whether the delegations at G7 finance ministers’ consultations in Canada could agree on joint language, with one European source saying that US officials wanted to delete language describing Russia’s invasion of Ukraine as “illegal.”

“I am very positive that we will also reach a joint communique,” Klingbeil said at a press conference in Banff, adding that if Russia is not prepared to enter into serious negotiations with Ukraine, “we will consider further sanctions.”

The EU and Britain this week announced new sanctions against Russia without waiting for Washington to join them, a day after President Donald Trump’s phone call with Russian President Vladimir Putin brought about neither a ceasefire in Ukraine nor fresh US sanctions.

European leaders have been lobbying intensely for the Trump administration to join them in imposing new sanctions if Russia rejected a ceasefire.

Klingbeil said that G7 finance ministers and their Ukrainian counterpart had concluded in a meeting that the conflict was “a brutal war” initiated by Russian President Vladimir Putin and that support for Ukraine continued unabated.

“I am optimistic that in the end such formulations will also be included in the communique, but please wait for the exact wording, as I want to leave that to the Canadian presidency this afternoon,” he said.

TRADE SOLUTIONS

Klingbeil earlier on Wednesday met United States Treasury Secretary Scott Bessent for a bilateral conversation and the two agreed to meet again in Washington.

“We have always discussed forward, how we can take steps together to find solutions,” Klingbeil said about the meeting, adding that Bessent’s invitation was a good sign.

Klingbeil warned, however, that if no agreement can be found with the United States on tariffs, “then we can expect turbulence on the markets again very quickly.”

The Trump administration has imposed a 25 percent tariff on US imports of steel, aluminum and cars, as well as a baseline 10 percent tariff on almost all countries, with additional “reciprocal” tariffs — making for a combined 20 percent in the EU’s case — lined up if negotiations during a 90-day pause fail.


China’s top diplomat to visit Somalia on Africa tour

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China’s top diplomat to visit Somalia on Africa tour

  • Stop in Mogadishu provides diplomatic boost after Israel became the first country to formally recognize breakaway Somaliland
  • Tour focusses on Beijing's strategic trade ​access across eastern and southern Africa
BEIJING: China’s top diplomat began his annual New Year tour of Africa on Wednesday, focusing on strategic trade ​access across eastern and southern Africa as Beijing seeks to secure key shipping routes and resource supply lines.
Foreign Minister Wang Yi will travel to Ethiopia, Africa’s fastest-growing large economy; Somalia, a Horn of Africa state offering access to key global shipping lanes; Tanzania, a logistics hub linking minerals-rich central Africa to the Indian Ocean; and Lesotho, a small southern African economy squeezed by US trade measures. His trip this year runs until January 12.
Beijing aims to highlight countries it views as model partners of President Xi Jinping’s flagship “Belt and Road” infrastructure program and to expand export markets, particularly in young, increasingly ‌affluent economies such ‌as Ethiopia, where the IMF forecasts growth of 7.2 percent this year.
China, ‌the ⁠world’s ​largest bilateral ‌lender, faces growing competition from the European Union to finance African infrastructure, as countries hit by pandemic-era debt strains now seek investment over loans.
“The real litmus test for 2026 isn’t just the arrival of Chinese investment, but the ‘Africanization’ of that investment. As Wang Yi visits hubs like Ethiopia and Tanzania, the conversation must move beyond just building roads to building factories,” said Judith Mwai, policy analyst at Development Reimagined, an Africa-focussed consultancy.
“For African leaders, this tour is an opportunity to demand that China’s ‘small yet beautiful’ projects specifically target our industrial gaps, ⁠turning African raw materials into finished products on African soil, rather than just facilitating their exit,” she added.
On his start-of-year trip in 2025, ‌Wang visited Namibia, the Republic of Congo, Chad and Nigeria.
His visit ‍to Somalia will be the first by a Chinese foreign minister since the 1980s and is ‍expected to provide Mogadishu with a diplomatic boost after Israel became the first country to formally recognize the breakaway Republic of Somaliland, a northern region that declared itself independent in 1991.
Beijing, which reiterated its support for Somalia after the Israeli announcement in December, is keen to reinforce its influence around the Gulf of Aden, the entrance ​to the Red Sea and a vital corridor for Chinese trade transiting the Suez Canal to Europe.
Further south, Tanzania is central to Beijing’s plan to secure access to Africa’s ⁠vast copper deposits. Chinese firms are refurbishing the Tazara Railway that runs through the country into Zambia. Li Qiang made a landmark trip to Zambia in November, the first visit by a Chinese premier in 28 years.
The railway is widely seen as a counterweight to the US and European Union-backed Lobito Corridor, which connects Zambia to Atlantic ports via Angola and the Democratic Republic of the Congo.
By visiting the southern African kingdom of Lesotho, Wang aims to highlight Beijing’s push to position itself as a champion of free trade. Last year, China offered tariff-free market access to its $19 trillion economy for the world’s poorest nations, fulfilling a pledge by Chinese President Xi Jinping at the 2024 China-Africa Cooperation summit in Beijing.
Lesotho, one of the world’s poorest nations with a gross domestic product of just over $2 billion, ‌was among the countries hardest hit by US President Donald Trump’s sweeping tariffs last year, facing duties of up to 50 percent on its exports to the United States.