Morning Chronicle - G20 finance leaders close talks marked by US welcoming Russia

US Treasury Secretary Scott Bessent said the fact that nearly all participants agreed to the chair's final statement suggested "there has been no impact" from Russia's attendance.

Ukraine's European allies had expressed frustration after Russian Finance Minister Anton Siluanov was welcomed at the US-hosted meetings in Asheville, North Carolina.

The broiling Middle East war and President Donald Trump's tariffs also loomed over the gathering.

The chair's statement called for "free, safe, and predictable navigation through the Strait of Hormuz," though China dissented from that section.

The key waterway has been largely blocked by Tehran since the war began in late February with US-Israeli strikes on Iran.

A traditional "family photo" of G20 participants was taken Monday without Siluanov, following European officials' protests.

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

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

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

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.

But Bessent countered at a press conference: "I know that some Europeans had a sour taste, but I think it's very important to engage."

"And I will point out that the finance minister who I met with is unsanctioned," he added of Siluanov.

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.

The United States holds the rotating G20 presidency, and Washington was also pushing this week to rally support from partners on Iran sanctions and reducing trade imbalances.

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

- 'Persistent imbalances' -

Another topic China took issue with was a declaration that "excessive and persistent imbalances pose risks and can generate economic distortions."

This echoes criticism of excess industrial capacity in the world's second biggest economy, which critics say create unfair competition and drive prices lower.

"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."

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.

Another issue that came up was support for Ukraine, which was discussed as well on the sidelines of the meeting by the narrower Group of Seven advanced economies.

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.

A.Featherswallow--MC-UK