G7 leaders began their three-day summit on Sunday by announcing sanctions on Russian gold and weighing more measures on oil to ensure that soaring prices do not give Moscow an economic advantage.

Talks between the leaders of Germany, Britain, France, Italy, the United States, Canada and Japan during a retreat in the Bavarian Alps will be dominated by the invasion Ukraine which is now in its fifth month despite Western sanctions against Russia.

Behind the handshakes and heavy security, there are differing opinions within the club of wealthy democracies on how difficult it is to squeeze Russia before the measures become too much of a burden on the countries imposing them.

Although a line of thought among officials is that the sanctions will become more powerful as the Russian military and economy are denied the resources to rebuild, skeptics said they have not reached the goal. purpose of forcing a change of mind.

US President Joe Biden is floating the idea of ​​a Russian oil price cap to toughen sanctions and avoid a situation where the Kremlin gets more money for fewer exports due to skyrocketing fuel prices.

US diplomats have suggested this could be done by blacklisting tankers if the fuel they carry is above the ceiling price, meaning they would not be able to qualify for marine insurance.

The United States is “looking for ways to minimize the effect of rising oil prices and the benefits Mr. Putin continues to derive from those oil prices,” national security spokesman John Kirby said. referring to the Russian president.

European countries have said they are open to discussing the idea but fear returning to the oil sanctions debate weeks after heated talks on an embargo put Western unity to the test on the Ukraine.

The EU, also represented at the summit, finally agreed to an oil embargo last month, but only after conceding to Hungary that pipeline deliveries were exempt and offering grace periods to other countries.

Government sources in Germany, which holds the rotating G7 presidency and hosts the summit at the resort town of Schloss Elmau, about 105 kilometers south of Munich, said the talks were looking at how a price cap could work and how the EU sanctions could align with those of its partners.

German Chancellor Olaf Scholz suggested the net might need to be cast wider than the G7 because “only something everyone does together can work”.

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An EU official said the standoff with Hungary showed it was right to take time off on sanctions and there was no intention to reopen its sixth package.

Still, changes could be made to fill in the loopholes of the package, which ventured into the insurance market to weaken Russia’s ability to sell oil to other countries.

The United States announced an oil and gas embargo in March, while Britain said it would end oil imports by the end of the year. The EU has moved more slowly because many of its members depend on Russian fuel imports.

The EU official said the G7 had a particularly important role this year because the other big club of rich countries, the G20, understands Russia and therefore can hardly act unanimously to punish the Kremlin.

Four G7 members – the UK, US, Japan and Canada – have announced an embargo on Russian gold, with Britain saying it would prevent Kremlin-friendly oligarchs from buying bullion for circumvent the sanctions.

“We must deprive the Putin regime of its funding. The UK and our allies are doing just that,” said British Prime Minister Boris Johnson, who is expected to urge France and Germany to toughen their stances on Russia.

The G7 agreed in talks in March that it would focus on Russian central bank gold transactions, but had not announced a full ban on imports.

European Council President Charles Michel said the EU was open to considering tackling gold through its more laborious sanctions process. Gold exports represent about $15.5 billion a year for the Russian economy, according to customs data.

Britain’s Chancellor of the Exchequer, Rishi Sunak, said Britain’s intervention was important given London’s leading role in the gold market.

G7 leaders are expected to adopt separate conclusions on Ukraine in addition to their main communiqué, in what German officials hope will be a show of solidarity with the country.

Leaders will return to the Ukraine issue on Monday when President Volodymyr Zelensky is due to address the summit online.

Updated: June 27, 2022, 11:17 a.m.