G20 finance leaders close talks marked by US welcoming Russia

G20 finance leaders wrapped up their two-day meeting on Tuesday with a statement signifying that all countries, except China, endorsed the participation of Russia in the forum. US Treasury Secretary Scott Bessent stated that the acceptance of nearly all participants to the chair's statement indicates that Russia's presence did not impact the proceedings.

Ukraine's European allies had been disappointed after the Russian Finance Minister, Anton Siluanov, was welcomed at the US-hosted gathering in Asheville, North Carolina. The brewing conflict in the Middle East, President Donald Trump's tariffs, and the ongoing war in Ukraine were among the issues that dominated the meeting. The chair's statement called for "free, safe, and predictable navigation through the Strait of Hormuz," but China disagreed with this particular section.

The Strait of Hormuz has been largely blocked by Iran since the war began in late February due to US-Israeli strikes on the nation. A traditional "family photo" of the G20 participants was taken without Siluanov, following protests from European officials. At a separate G20 innovation gathering in Chapel Hill, North Carolina, European leaders were separated from Russia's delegation in two group photos.

EU spokespersons revealed that the representatives were only given brief notice of Siluanov's attendance, which caused discomfort. EU economy chief Valdis Dombrovskis emphasized that it was not the right time to "normalize" Russia's presence at such events, asserting that Moscow's inclusion means discussing sensitive economic matters with a government that is waging an aggressive war and killing civilians in its conflict in Ukraine.

However, Bessent responded at a press conference, stating that it is crucial to engage and the finance minister he met was unsanctioned. Meanwhile, Germany accused Russia of attempting a "hybrid attack" involving a drone at a German airport last month, and unveiled diplomatic measures. The United States, which holds the rotating G20 presidency, was pushing for support from partners on Iran sanctions and reducing trade imbalances.

Bessent revealed that many conversations are best conducted privately. Another issue that China contested was a declaration about "excessive and persistent imbalances posing risks and generating economic distortions," calling for countries to take steps to eliminate non-market policies – a move that criticized China's excess industrial capacity, which critics claim leads to unfair competition and drives prices down.

The G20 comprises 19 nations, the EU, and the African Union, and was created in the aftermath of the 1997-1998 Asian financial crisis to enhance global economic and financial stability. The Asheville finance talks also paved the way for a G20 leaders' summit in Miami that Trump will convene in December. The G20 also addressed support for Ukraine, which was discussed on the sidelines during the G7 advanced economies' meeting.

Russia has escalated its strikes on Kyiv this summer, and US-brokered talks remain stalled as the Kremlin continues to demand an end to the war on maximalist terms. German Finance Minister Lars Klingbeil expressed concern over the "increase in brutal rocket attacks on the civilian population" and emphasized that this situation needs to end.

At a meeting of the G7 leaders on Monday, Klingbeil reiterated the European position on Ukraine, stating that Ukraine's finance minister joined remotely for talks on support for Kyiv.