Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

G20 commits to higher growth, fight climate change; Russia isolated over Ukraine

Published 11/16/2014, 06:50 AM
Updated 11/16/2014, 06:50 AM
© Reuters Russia's President Putin listens during his bilateral meeting with France's President Hollande on the sidelines of the G20 summit in Brisbane

By Lincoln Feast and Alexei Anishchuk BRISBANE Australia (Reuters) - Leaders from the G20 group of nations agreed on Sunday to boost flagging global growth, tackle climate change and crack down on tax avoidance but ties between the West and Russia plummeted to a new low over the crisis in Ukraine.

Russian President Vladimir Putin left the G20 summit in Brisbane early as U.S. President Barack Obama accused Russia of invading Ukraine and Britain warned of a possible "frozen conflict" in Europe.

Several Western nations warned Russia of further sanctions if it did not withdraw troops and weapons from Ukraine.

"I think President Putin can see he is at a crossroads," said British Prime Minister David Cameron. "If he continues to destabilize Ukraine there will be further sanctions, further measures.

"There is a cost to sanctions, but there would be a far greater cost in allowing a frozen conflict on the continent of Europe to be created and maintained."

Obama said Russia's isolation was unavoidable.

"We would prefer a Russia that is fully integrated with the global economy," he told a news conference.

"But we are also very firm on the need to uphold core international principles.... you don't invade other countries or finance proxies and support them in ways that break up a country that has mechanisms for democratic elections."

Before leaving the G20 Summit, Putin said a solution to the Ukraine crisis was possible, but did not elaborate.

"Today the situation (in Ukraine) in my view has good chances for resolution, no matter how strange it may sound," Putin said. He skipped a working lunch at the summit to leave early, citing the long flight home and need for sleep.

Russia has denied any involvement in the conflict in Ukraine that has killed more than 4,000 people this year.

CLIMATE CHANGE

Security and climate change overshadowed G20 talks on boosting global economic growth at the summit, although the leaders did sign off on a package of measures to add an extra 2.1 percentage points to global growth over five years.

"This will add more than $2 trillion to the global economy and create millions of jobs," said a communique issued at the end of the meeting, which also committed to tackle global tax avoidance denying government's billions of dollars in revenue.

The United States and other nations overrode host Australia's attempts to keep climate change off the formal agenda. Australia is one of the world's biggest carbon emitters per capita.

The final communique called for strong and effective action to address climate change with the aim of adopting a protocol, with legal force, at a U.N. climate conference in Paris in 2015.

"The most difficult discussion was on climate change," an EU official told reporters on condition of anonymity. "This was really trench warfare, this was really step by step by step. In the end we have references to most of the things we wanted."

Obama put climate change squarely on the G20 agenda with a speech on Saturday calling on all nations to act, and committing $3 billion to the Green Climate Fund. Japan pledged $1.5 billion to the fund on Sunday.

World leaders also agreed to unite in the fight against Ebola, which Britain's Cameron said was not only a humanitarian crisis but also a security threat.

"The best way we can keep out people safe from Ebola is by tackling it at source," he said.

RUSSIAN SANCTIONS

Sanctions against Russia aimed at sectors like oil and banking, as well as individuals close to Putin, are squeezing its economy at a time when falling oil prices are straining the budget and the rouble has plunged on financial markets.

"At this point the sanctions we have in place are biting plenty good," Obama said after the summit. "We retain the capability, and we have our teams constantly looking at mechanisms in which to turn up additional pressure as necessary."

Earlier in the day, Obama, Australian Prime Minister Tony Abbott and Japanese Prime Minister Shinzo Abe lined up together against Russia, vowing to oppose what they called Moscow's efforts to destabilize eastern Ukraine.

European leaders including German Chancellor Angela Merkel also warned of more sanctions unless Russia ends its support for pro-Russian separatist rebels.

© Reuters. U.S. President Obama meets with European leaders at the G20 in Brisbane

EU foreign ministers will meet on Monday to consider further steps, including additional possible sanctions on Russia.

(Additional reporting by Jane Wardell, Ian Chua, Matt Spetalnick and Matt Siegel in Brisbane; Writing by Michael Perry; Editing by Raju Gopalakrishnan)

Latest comments

Sad we will never know the full story..USA wants a war at any cost with any one to divert attention away from the disaster in USA ..More civil unrest and the soup kitchens in Wal Mart collecting Food stamps.
Isolation is a strong word in this case. Most of the world entering in a close cooperation with Russia ( China, India, half of America, Iran etc...) let's face the reality Russia is fully independent country with great amount of resources and now looks like Russia starts to have an independent opinion. . Ok sanctions hits Russian bank sectors but at the end this will hit European countries.. Less finance access means less purchasing in those countries. Not sure where it's all going...
You always get brainwashed Party mainline an US media outlets these days , in reality Obama is a laughing stick of a President who is only supported by the rest of Anglo-Saxon nations and countries that are subservient to them in all matters . There is no way US can hurt Russia in reality , Russia is fully self sufficient in basic matters like food and energy , as well as Deference , other luxury goods like Cars and machinery , electronics are also made there and most countries import form China any way ....
Oh , I get it now a co-writer was a Ukrainian Alexei Anishchuk .... That explains it ..
Well thanks to Obama and the West Sanctions Crude oil price is reducing inflation worldwide and the Russian sponsored rebels in Ukraine and ISIS of Iraq have to be contained.all the mentioned countries are in serious debt problems and except India which has a big debt and inflation because of high crude oil prices.Inflation has decreased and spending is increasing and japan devaluating the yen and china GDP increasing not much,bank lending will not mean more consumption.Not sure where it is going either but if it can contain Ukraine rebels and ISIS whatever possible is still worth it.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.