While Ukraine managed to conduct a peaceful presidential election recently, the situation in the eastern region near the Russian border remains unstable, with armed groups attacking Ukrainian forces and taking over government buildings. The G7 stated their readiness to escalate targeted sanctions against Russia if necessary. German Chancellor Angela Merkel emphasized the importance of ensuring Russia's cooperation in stabilizing the situation in Ukraine, following the annexation of Crimea in March. The US and EU have already imposed some sanctions on Russian officials, with further measures threatened if the May elections had been disrupted. However, the elections proceeded smoothly, suggesting a potential decrease in the need for additional sanctions. Wednesday's statement indicates that the West is not yet convinced that President Vladimir Putin is taking sufficient action to ease tensions in eastern Ukraine. Russia denies involvement in the uprising in the region, where pro-Moscow militias have taken control of buildings, attacked Ukrainian forces, and declared independence. Despite being excluded from the G7 summit, Putin will have meetings with Merkel, Hollande, and Cameron at a D-Day anniversary event in France. The focus is on the content of these meetings rather than who is involved. Obama has shown support for Ukrainian President Poroshenko, who he met with before the summit. Poroshenko expressed willingness to meet with Putin for peace talks at the D-Day commemorations, although no meeting has been scheduled yet. The G7 summit will also address economic issues, trade, climate, and energy policy, with a focus on energy security in Europe, which is heavily reliant on Russia for oil and gas. The leaders are expected to emphasize the importance of ensuring the security of energy supplies and condemn the use of energy resources as a tool for political coercion or threats to security. The situation in Ukraine highlights the importance of prioritizing energy security and implementing a more significant shift in diversifying energy sources. The economic talks among the G7 countries are not anticipated to introduce new ideas, but rather emphasize the need for all members to concentrate on maintaining economic growth and implementing stricter regulations to prevent potential issues in the banking sector. The leaders will also restate their dedication to finalizing financial reforms, including addressing the issue of "too-big-to-fail" banks, by the end of the year.