The Japan Times - 'Discomfort' at G20 finance talks as US hosts Russian minister

Finance ministers and central bank governors from the Group of 20 major economies are holding two days of talks that end Tuesday in Asheville, North Carolina.

But the US-Israel war with Iran, President Donald Trump's tariffs and the in-person attendance of Russian Finance Minister Anton Siluanov -- despite Moscow's 2022 invasion of Ukraine -- weighed on the group's work.

"It created discomfort, no doubt about that," Canadian Finance Minister Francois-Philippe Champagne told AFP on Tuesday when asked if Siluanov's appearance affected the meetings.

EU economy chief Valdis Dombrovskis told reporters that it was not the time to "normalize" Russia's presence at such gatherings.

He said Moscow's inclusion entails discussing sensitive economic matters with representatives of a government that is "waging an aggressive war" and "killing civilians on a daily basis" in its conflict in Ukraine.

The tension also comes as Germany blamed Russia on Tuesday for an attempted "hybrid attack" involving a drone at a strategic German airport last month, and unveiled diplomatic counter-measures.

A traditional "family photo" of G20 participants was taken Monday without Siluanov, following European officials' protests, and away from media covering the gathering.

An EU spokesperson said representatives were only given short notice of Siluanov's attendance.

- 'Collective action' -

US Treasury Secretary Scott Bessent hosted Siluanov at a bilateral meeting, however, with a Treasury official noting that Bessent made a push for President Donald Trump's peace plan on Ukraine.

Asked if he also pressured Russia to cut its support for Iran, Bessent would only tell reporters that "many conversations are best done privately."

With the United States holding the rotating G20 presidency, Washington is also seeking ways to boost economic growth and urge countries to reduce what it considers to be trade imbalances.

This is likely to hit at concerns over China's excess industrial capacity and what Washington deems unfair trading practices. China is a G20 member.

"We need to discuss and look at collective action, because global imbalances as they are today are not sustainable," Champagne said. "Everyone has to be at that table."

On whether the grouping can agree on a joint statement at the end of talks, he added that "I think the message to the world is that we are united," including on supporting Ukraine.

- Breakthroughs tough -

Moscow has intensified its strikes on Kyiv this summer. US-brokered talks remain frozen while the Kremlin has maintained its maximalist demands to end the war.

German Finance Minister Lars Klingbeil said Tuesday that there has been an "increase in brutal rocket attacks on the civilian population."

"This all has to come to an end," he added.

Klingbeil said that he and other European ministers "made our position on Ukraine absolutely clear." As G7 leaders met late Monday, he said Ukraine's finance minister joined remotely for talks on support for Kyiv.

The G20 comprises 19 nations plus the EU and the African Union, and was established in the wake of the 1997-1998 Asian financial crisis to boost global economic and financial stability.

The G20 finance talks also set the stage for a leaders' summit that Trump will convene in December in Miami.

Yet, "very few recent G20 meetings have produced significant breakthroughs, and it's unlikely that this one will," said James Lindsay of the Council on Foreign Relations, a think tank.

Lindsay told AFP there are "significant differences" among G20 ministers, including over how to deal with China's excess manufacturing capacity and with Iran sanctions.

Washington's invitation of Siluanov "certainly doesn't help US efforts to enlist the Europeans" in piling further pressure on Iran or fostering acceptance of Trump's economic policies, he added.

There is also unhappiness over the exclusion of G20 member South Africa this year, Lindsay said.

Y.Kimura--JT