Even though Ukraine successfully conducted a peaceful presidential election recently, the situation in the eastern region close to the Russian border remains unstable, with armed groups attacking Ukrainian government forces and occupying state buildings. The G7 stated that they are prepared to increase targeted sanctions and consider additional restrictive measures against Russia if necessary. German Chancellor Angela Merkel emphasized the need for Western powers to monitor Russia's actions to stabilize the situation, following the annexation of Crimea in March. Merkel warned that if progress is not made in resolving issues in Ukraine, heavy sanctions could be imposed. Despite minor sanctions already in place, further actions were threatened if the May 25 elections were disrupted. With the elections going smoothly, some believe that Russia may be more cooperative, reducing the likelihood of additional sanctions. However, the statement released on Wednesday indicates that the West is still not satisfied with President Vladimir Putin's efforts to reduce tensions. Russia denies involvement in the unrest in eastern Ukraine, where pro-Moscow militias have taken control of buildings, attacked Ukrainian forces, and declared independence. Despite being excluded from the G7 summit, Putin will meet with Merkel, Hollande, and Cameron at a D-Day event in France. The focus of the G7 summit will include discussions on economics, trade, and energy security, particularly in Europe where Russia supplies a significant amount of oil and gas. The leaders will emphasize the importance of ensuring the security of energy supplies and condemn the use of energy as a political tool. The crisis in Ukraine highlights the importance of prioritizing energy security and the need to significantly change our approach to diversifying energy sources. The economic discussions among G7 members, including the United States, Canada, Germany, France, Britain, Japan, and Italy, are not expected to introduce new ideas but instead emphasize the importance of sustaining economic recovery and implementing stricter regulations to avoid future banking sector issues. The leaders will also reiterate their commitment to completing financial reforms this year, including addressing the issue of "too-big-to-fail" banks.