Finance ministers from the Group of Seven (G7) have convened this week in Banff, Alberta, facing a potentially contentious draft communiqué.
At the centre of the dispute is the language concerning Ukraine, with the United States reportedly opposing references to “further support” for Kyiv and objecting to the characterisation of Russia’s full-scale invasion as “illegal”, according to two officials cited by Politico.
U.S. Divergence on Ukraine Language
Washington’s stand reflects a broader shift under the Trump administration. Two officials directly involved in the process confirmed that the U.S. delegation opposes including a pledge of “further support” for Ukraine. Moreover, the U.S. removes reference to the “illegal” nature of Russia’s invasion, signalling reluctance to invoke legal characterisations that were previously standard in G7 statements.
This position aligns with earlier reports highlighting a reluctance to target Russia explicitly. In March, the U.S. declined terminology such as “Russian aggression” and vetoed proposals on Russia’s shadow fleet, reinforcing a cautious tone in multilateral messaging.
Host Nation Seeks Consensus
Despite these objections, Canadian Finance Minister François‑Philippe Champagne emphasised the broader agenda when announcing the start of the meetings. He described the group’s priority as “restoring global stability and growth”, pointing to deliberations on excess manufacturing capacity, non‑market practices, financial crime and pandemic recovery efforts.
Minister Champagne reaffirmed Canada’s support for Ukraine, mentioning Canada’s examination of helping Ukraine bolster its pension system. Ukraine’s finance minister Serhii Marchenko arrived with calls for tougher sanctions, including tightening the G7-led cap of USD 60 per barrel on Russian crude exports.
Internal Strains: Trade and Sanctions
Alongside Ukraine, G7 deliberations are coloured by rising trade tensions. The U.S. recently introduced tariffs on imports from several G7 countries — 25 per cent on Canadian goods and 10 per cent on those from the UK, EU nations and Japan. Several leaders remain under threat of further tariffs in July, putting strain on unity.
Canada has linked these trade measures to efforts to curb smuggling and fentanyl trafficking, notably through ending duty exemptions for low-value shipments from China. Meanwhile, Washington is advocating for a sharper G7 line on China’s state‑backed industrial model, seen as contributing to global overcapacity.
Diplomatic Stakes and G7 Prospects
The backdrop to the strained language negotiations is a cycle of earlier diplomatic rows. In March, U.S. officials reportedly resisted firm terminology on Russia in a foreign ministers’ meeting, and French President Macron made repeated efforts to preserve a strong stance on Ukraine.
In contrast, at a recent G7 summit in Quebec in late March, the group reached agreement on a foreign ministers’ declaration confirming support for Ukraine’s territorial sovereignty and calling for a ceasefire — even as U.S. President Trump pursued trade-driven tensions with Canada.
Implications Moving Forward
The Banff meeting, set to run through Thursday, precedes the full G7 Heads of State Summit in June at Kananaskis, Alberta. Canada, as host, is pushing for a delicate balance of messages on trade, finance and geopolitics before the leaders gather.
Should the U.S. succeed in excising references to further support and the “illegal” status of Russia’s actions, the resulting communiqué would represent a marked shift from previous G7 consensus. The softer language could complicate unified policy approaches on financial aid, sanctions and reputational messaging ahead of the June leaders’ meeting.
Euro‑Atlantic partners are closely watching whether U.S. priorities will shift during these discussions, especially given pressure from allies keen to preserve a firm stance on Russia’s conduct. With Canada actively advocating for strong language and broader sanctions, Banff is shaping up as a test of allied unity.
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