G20 meet ends without communique after Russia, China oppose any reference to Ukraine war
"Most members strongly condemned the war in Ukraine and stressed that it is causing immense human suffering and exacerbating existing fragilities in the global economy - constraining growth, increasing inflation, disrupt
A meeting of finance leaders of the world's 20 biggest economies, referred to as the group of 20 or G20, ended on Saturday without a joint communique after Russia and China opposed any reference to the war in Ukraine.
Instead, a G20 Chair's Summary and Outcome Document were released after the two-day meeting of finance ministers and central bank governors here. It carried two paragraphs on the war but added that this was not agreed to by Russia and China.
Coinciding with the first anniversary of Russia's invasion of Ukraine, leaders from countries such as the US and France wanted a condemnation of Moscow for the invasion while host India initially felt G20 was not the forum to address such an issue and wanted a more neutral term like "crisis" or a "challenge" to describe the "geopolitical situation".
But eventually, it did agree to include the impact the war has had on the global economy. Russia and China were upset at the use of the G20 platform for discussing political matters. India's Finance Miniter Nirmala Sitharaman is the chair. The Summary stated that the G20 nations "reiterated" their national positions on the Ukraine war.
"Most members strongly condemned the war in Ukraine and stressed that it is causing immense human suffering and exacerbating existing fragilities in the global economy - constraining growth, increasing inflation, disrupting supply chains, heightening energy and food insecurity, and elevating financial stability risk.
"There were other views and different assessments of the situation and sanctions. Recognising that the G20 is not the forum to resolve security issues, we acknowledge that security issues can have significant consequences for the global economy, the Summary said, adding this particular paragraph of the statement was not agreed to by Russia and China.
It went on to state that upholding international law and the multilateral system that safeguards peace and stability was essential. Addressing a press conference, Sitharaman said the paragraphs omitted were exactly what the leaders of G20 had agreed at the last summit in Bali, Indonesia in November last year. "But two countries, Russia and China had reservations. So with a footnote certainly a communique can't go out and therefore it had to be a chair summary and an outcome document," she said.
"They didn't want those two paragraphs to go in the communique because the leaders had prepared that and it was timed for circumstances that prevailed then (in Bali) and so not now." Economic Affairs Secretary Ajay Seth said the language of the paragraphs was taken from the G20 Bali declaration.
"The only change is the para there in Bali declaration said this year we have witnessed a war. Now the year has gone by. Both Russia and China took the position that Finance Ministers and Central Bank Governors' mandate is to deal with economic and financial issues and their mandate is not on geo-political issues. So they did not comment on the language part. They said it is not their domain so they will not comment on the language part."
"There
was
no
request
or
demand
to
remove
the
word
'war',
they
just
said
to
remove
the
paragraph
itself
because
it
was
not
the
right
place
for
having
those
paragraphs.
On
the
other
hand,
all
other
18
countries
felt
that
the
war
has
got
implications
on
the
global
economy
so
this
is
the
right
place
to
have
those
paragraphs,"
he
added.
The
two-day
meeting
discussed
a
wide
range
of
issues
-
from
debt
relief
to
poorer
countries,
to
digital
currencies
and
payments,
reforms
of
multilateral
lending
institutions
like
the
World
Bank,
climate
change
and
financial
inclusion.
The meeting discussed "debt vulnerabilities" in low and middle-income countries. "Strengthening multilateral coordination by official bilateral and private creditors is needed to address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries," Sitharaman's Summary said flagging debt restructuring at Zambia, Ethiopia, Ghana and Sri Lanka.
"We task the International Financial Architecture Working Group to develop a G20 Note on the Global Debt Landscape in a fair and comprehensive manner." It went on to state that sustainable finance is critical in achieving sustainable, resilient, inclusive and equitable economic growth which meets the needs of the present without compromising the ability of future generations to meet their own needs.
The meeting also pressed for a need for "the international community to step up its efforts to effectively combat money laundering, terrorism financing, and proliferation financing to enhance the integrity and resilience of the international financial system."
Sitharaman's summary said the global economic outlook has modestly improved since the last meeting in October 2022. "However, global growth remains slow, and downside risks to the outlook persist, including elevated inflation, a resurgence of the pandemic and tighter financing conditions that could worsen debt vulnerabilities in many emerging market and developing economies (EMDEs)."
"We,
therefore,
reiterate
the
need
for
well-calibrated
monetary,
fiscal,
financial,
and
structural
policies
to
promote
growth
and
maintain
macroeconomic
as
well
as
financial
stability.
We
will
continue
to
enhance
macro
policy
cooperation
and
support
the
progress
towards
the
2030
Agenda
for
Sustainable
Development,"
it
said.
Also
discussed
was
revisiting
the
adequacy
of
IMF
quotas.
The
Summary
said
the
leaders
"will
continue
the
process
of
IMF
governance
reform
under
the
16th
General
Review
of
Quotas,
including
a
new
quota
formula
as
a
guide,
to
be
completed
by
15
December
2023."
Earlier,
US
Treasury
Secretary
Janet
Yellen
said
it
was
"absolutely
necessary" the
communique
contains
a
condemnation
of
Russia.
French
finance
minister
Bruno
Le
Maire
said
there
was
no
way
G20
could
step
back
from
a
joint
statement
agreed
at
a
last
summit
in
Bali,
Indonesia
in
November
2022,
which
had
stated
that
"most
members
strongly
condemned
the
war
in
Ukraine".
At
the
last
G20
Summit
in
Bali
in
November
2022,
the
declaration
read:
"Most
members
strongly
condemned
the
war
in
Ukraine".
However,
some
member
countries
held
"other
views
and
different
assessments
of
the
situation
and
sanctions".
Russia,
which
is
part
of
G20,
calls
its
invasion
of
Ukraine
a
"special
military
operation".