While Ukraine successfully conducted a peaceful presidential election recently, the situation in the eastern region near the Russian border remains unstable, with armed groups attacking Ukrainian government forces and taking over state buildings. The G7 stated that they were prepared to increase targeted sanctions and consider additional restrictive measures against Russia if necessary. German Chancellor Angela Merkel emphasized the importance of ensuring Russia's efforts to stabilize the situation in Ukraine, which has been tense since March when Russia annexed Crimea. Merkel warned of the possibility of heavy sanctions if progress is not made in resolving the issues in Ukraine. Despite minor sanctions imposed on Russian officials in response to the Crimea crisis, further actions were threatened if the May 25 elections were disrupted. However, the elections proceeded smoothly, and President Petro Poroshenko will be inaugurated on Saturday, signaling a potential decrease in the need for additional sanctions. However, the statement released on Wednesday indicates that the West is still not convinced that President Vladimir Putin is taking enough action to ease tensions. Russia denies involvement in the uprising in eastern Ukraine, where pro-Moscow militias have taken control of buildings, attacked Ukrainian forces, and declared independence. Putin has defended his right to protect Russian-speaking individuals. Although Putin has been excluded from the G7 summit for the first time since Russia joined in 1997, he will meet with Merkel, Hollande, and Cameron at a D-Day event in France. When asked about these meetings and whether they concern President Obama, a U.S. official stated that the content of the discussions is more important than who Putin meets with. The G7 summit will also cover economics, trade, climate, and energy policy, with a focus on energy security in Europe, which heavily relies on Russia for oil and gas. The leaders will release a separate statement emphasizing the need to prioritize energy security and condemning the use of energy supplies as a tool for political coercion. The crisis in Ukraine highlights the importance of prioritizing energy security in our collective agenda, which calls for a significant change in how we diversify energy supplies. The upcoming economic discussion among the G7 members, including the United States, Canada, Germany, France, Britain, Japan, and Italy, is not expected to introduce new ideas but to emphasize the need to sustain economic recovery and implement stricter regulations to avoid future banking sector issues. The leaders will also reaffirm their dedication to finalizing financial reforms this year, such as addressing the issue of "too-big-to-fail" banks.