Despite the peaceful presidential election in Ukraine last month, 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 are prepared to increase targeted sanctions on Russia if necessary. German Chancellor Angela Merkel emphasized the importance of verifying Russia's actions to stabilize the situation in Ukraine. If progress is not made, she warned of the possibility of heavy sanctions, including restrictions on trade, finance, and energy. The US and EU have already imposed travel bans and asset freezes on Russian officials in response to the Crimea annexation. The successful May 25 elections and upcoming inauguration of President Petro Poroshenko suggest potential cooperation from Russia, reducing the threat of further sanctions. However, the statement released on Wednesday indicates that the West is still not satisfied with President Vladimir Putin's efforts to de-escalate the situation in Ukraine. Russia denies any involvement in the unrest in eastern Ukraine, where pro-Russian militias have taken over buildings, attacked Ukrainian forces, and proclaimed independence. Despite being excluded from the G7 meeting for the first time since joining in 1997, Putin will meet individually with German Chancellor Angela Merkel, French President Francois Hollande, and British Prime Minister David Cameron at a D-Day anniversary event in France. The focus of these meetings is on the discussions held and not necessarily who Putin meets. Prior to the G7 summit, President Obama met with Ukrainian President Petro Poroshenko in Warsaw and expressed support for his leadership. Poroshenko, a billionaire in the chocolate industry, has expressed willingness to hold peace talks with Putin on the sidelines of the D-Day commemorations in Normandy. The G7 summit will also address economic, trade, climate, and energy policy, with a particular emphasis on energy security in Europe, which heavily relies on Russian oil and gas. The leaders are expected to stress the importance of prioritizing the security of energy supplies and reject the use of energy resources as a tool for political coercion. The crisis in Ukraine highlights the importance of prioritizing energy security and the need for a significant change in our strategy to diversify energy sources. The economic discussion among G7 members is not anticipated to introduce new ideas, but rather emphasize the importance of sustaining economic recovery and implementing stricter regulations to avoid future issues in the banking sector. The leaders will also reaffirm their dedication to finishing financial reforms this year, including addressing the issue of "too-big-to-fail" banks.