Despite the peaceful presidential election in Ukraine last month, the situation in the east near the Russian border remains unstable, with armed groups attacking Ukrainian government forces. The G7 stated they are prepared to increase targeted sanctions on Russia if necessary. German Chancellor Angela Merkel emphasized the importance of stabilizing the situation in Ukraine, warning of the possibility of heavier sanctions if progress is not made. Currently, minor sanctions have been imposed on Russian officials in response to the Crimea seizure, with further actions threatened if the May 25 elections were disrupted. The smooth elections suggest Russia may be more cooperative, reducing the likelihood of additional sanctions. However, the statement released on Wednesday indicates that the West is not satisfied with President Vladimir Putin's efforts 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. Despite being excluded from the G7 summit, Putin will meet individually with Merkel, Hollande, and Cameron at a D-Day event in France. Obama has avoided meeting with Putin, but a U.S. official stated that the content of the meetings is more important than who is involved. The G7 summit will also address economic, trade, climate, and energy issues, with a focus on energy security in Europe, which relies heavily on Russian oil and gas. European leaders are working to reduce dependence on Russia, but this transition will take time and may require support from the U.S. A separate statement from the G7 leaders will emphasize the importance of ensuring the security of energy supplies and condemning the use of energy resources as a tool for political coercion. The crisis in Ukraine highlights the importance of focusing on energy security and taking significant steps to diversify energy supplies. The economic discussion among G7 members, including the United States, Canada, Germany, France, Britain, Japan, and Italy, will focus on sustaining economic recovery and implementing stricter regulations to prevent future banking sector issues. The leaders will also reiterate their commitment to completing financial reforms this year, such as addressing "too-big-to-fail" banking.