Indonesia is chasing G20 progress with Russia, but Germany and France are skeptical

Russia’s entry into Ukraine overshadowed a meeting of foreign ministers from the group of 20 major economies last week when Russia’s top diplomat walked out of a meeting accusing the West of “holy criticism”.

And at the most recent meeting with G20 finance executives in Washington in April, officials from some Western countries left the room when the Russian representative took the floor.

Germany expects more open and direct talks with Russia this time, government sources in Berlin said on Wednesday.

“Most will want to take a different approach the day after April,” one source added.

But the source dampened hopes of a joint communiqué after the talks, which host Indonesia was aiming for, saying Russia and China are expected to adapt amid tensions with the West over the war in Ukraine.

A source from the French Ministry of Finance also said that G20 ministers are unlikely to agree on all points for a communiqué, especially with reference to the economic consequences of the war.

“The question is whether we have a separate statement from the presidency condemning the Russian invasion of Ukraine and describing the economic risks of its consequences, and then part of the communiqué, a roadmap dealing with the current work of the G20,” he said. French source.

“The G20’s ability to act and communicate has been severely hampered by the war in Ukraine, for which one of the G20 members is fully responsible,” the source added.

Indonesia hopes to release a communiqué at the end of negotiations on Saturday – which failed at the April meeting – but the governor of Indonesia’s central bank said that if that is not possible, the results will be summarized in a statement by the president.

“We hope for the best, but of course we are preparing for the worst,” said Perry Warjiyo, governor of Indonesia’s central bank.

“I do not want to speculate, we are still doing our best to reach a communiqué,” he said in an interview last week.

Indonesian officials have noted that there is disagreement between Western countries and Russia over how to draft a communiqué describing the state of the global economy and how it will be affected by the war in Ukraine, which called Moscow a “special military operation “.

US Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki on Tuesday blamed the war for volatility in foreign exchange markets and increased the risk of a global recession following a bilateral meeting in Tokyo.

Yellen and Suzuki personally attend the meeting in Bali.

Indonesia has said Russian Finance Minister Anton Siluanov will speak virtually at the meeting, where his deputy is traveling to Bali. Ukraine’s Finance Minister has also been invited and will attend a virtual session.

Aside from issues related to the war, Warjiyo said the G20 had made significant progress on issues such as regulatory principles for cryptocurrencies and central bank digital currencies.

Indonesia’s G20 finance delegate, Wempi Saputra, said the group would seek to take action to help poor countries deal with an impending food crisis by ensuring the supply and affordability of food and fertilizer.

Other items on the agenda include the creation of a World Bank fund to better prepare for future pandemics and a “Resilience and Sustainability Trust” at the International Monetary Fund, which countries in need of money can access, as well as debt. emergency aid to poor countries.

Yellen called on China and other non-Paris Club creditors to work “constructively” together to help low-income countries struggling with debt problems, saying Beijing’s lack of cooperation was “rather frustrating.”

Indonesia’s Wempi said a multinational signing of a global tax deal originally planned on the sidelines of the meetings has been postponed. The Organization for Economic Co-operation and Development has set a new target for the major tax reform, which is to be expected in 2024 rather than 2023.

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