US Brings Russia Back To G20, European Ministers Criticise Media Restrictions

The return of Russia to the G20 finance ministers' meeting in North Carolina on Monday drew criticism from European officials, according to Reuters, while the US decision to restrict access for some journalists has also prompted objections.

The two-day meeting in Asheville was focused on global economic growth, while Russia's participation and restrictions on media access drew criticism from officials. The talks are taking place as the global economy deals with an energy shock triggered by the Iran war, tensions over China's large goods trade surplus and uncertainty over the impact of a surge in artificial intelligence investment.

Russia's return draws criticism

Russian Finance Minister Anton Siluanov's presence at the G20 finance ministers and central bank governors meeting came as a surprise to some European officials.

Polish Finance Minister Andrzej Domanski said he was unhappy about Russia being represented, although he acknowledged that G20 hosts had the right to invite guests.

"We do not trust Russia. They lie constantly and you need to be really, really cautious while discussing with them,” he told Reuters in an interview, stressing that Russia was the aggressor in its conflict ​with Ukraine.

"So for me it would be very difficult to have any kind of conversation with Russia.”

German Finance Minister Lars Klingbeil said Europe was preparing another package of sanctions against Russia. He said Siluanov's presence at the Asheville meeting sent a "quite troubling" signal for US cooperation with the European effort.

"I would have wanted greater clarity from the American side that ​he should not be received here as a normal guest," Klingbeil said.

European officials also said they did not want to appear in the traditional G20 "family photo" with Siluanov. The photograph was ultimately taken without him.

Siluanov also met US Treasury Secretary Scott Bessent separately. Russia's finance ministry said the talks covered financial cooperation within the G20 framework.

A US official said the bilateral meeting focused on President Donald Trump's peace plan for Ukraine. According to a source familiar with the discussions, Bessent told Siluanov that economic relief for Russia or agreements on other issues would not be possible until the war ends.

The latest meeting contrasted with April 2022, when even Siluanov's virtual participation in a G20 meeting in Washington drew broad condemnation over Russia's invasion of Ukraine. Officials from the US, Britain, Canada and the European Central Bank walked out of that meeting.

Washington pushes economic growth

Amid the disagreement over Russia's presence, Bessent used the opening session to argue that stronger growth was necessary to address the debt accumulated since the 2008 global financial crisis and the COVID-19 pandemic.

Global debt levels earlier this year hit a record of nearly $353 trillion. The debt burden has raised concerns about financial stability and led some investors to reconsider even traditionally safe assets such as US Treasuries.

"The world is awash in debt post-GFC, post-COVID, and the only way for us to get ​out of this is to grow our way out of this," U.S. Treasury Secretary Scott Bessent said at the start of the meeting, referring to the 2007 to 2009 global financial crisis.

"I'm confident that a lot of the leaders are very receptive to this," he added.

The US Treasury invited private-sector figures to participate in some sessions dealing with stronger growth. The move reflected the Trump administration's view that growth was best served by deregulation, increased energy production and innovation.

Bessent said global growth had been below its potential for too long and that countries could no longer attribute the problem to "policy failures of our own making."

The US Treasury has identified several areas that G20 economies should address, including "excessive regulatory and administrative burdens, poorly designed financial incentives and tax systems, insufficient public and private investment, internal market fragmentation, and gaps in workforce skills and mobility."

Federal Reserve Chairman Kevin Warsh, attending his first international economic policy meeting since taking office in May, said he was interested in learning more about growth prospects across member economies.

Warsh said the period of "secular stagnation", which had been characterised by a lack of innovation, appeared to be ending as investment in artificial intelligence increased.

"If I were to try to characterize this moment, it would be one of a global investment surge," he said, adding that ​it had reversed the "global savings glut", which in the past had kept capital idle due to a shortage of investment opportunities.

Restrictions on media access draw criticism

The US Treasury's decision to restrict access for some journalists also drew criticism at the meeting.

Media credentials were denied to teams from Bloomberg News and to specific reporters from The New York Times and The Wall Street Journal.

Klingbeil criticised the restrictions, saying journalists had a legitimate interest in covering the G20 meeting openly.

"I believe the press has a completely legitimate interest in reporting openly and freely on this G20 summit," Klingbeil said. "I consider it unacceptable for journalists or entire editorial teams to be excluded."

A US Treasury spokesperson said more than 300 media personnel were covering the meeting, including another New York Times reporter. The spokesperson said access came with a "responsibility to report ​factual information consistent with established journalistic standards."

US debt and China trade come into focus

Bessent also sought to counter concerns about US debt levels and the state of the Treasury market, pointing to continued economic growth despite large budget deficits.

US investment in AI infrastructure has contributed to higher Treasury debt yields by absorbing savings that had previously flowed into Treasuries and helped keep US borrowing costs down.

Before the G20 meeting, Bessent rejected suggestions that the US debt market was facing significant disruption.

"First of all, I'm not sure where the bond market turmoil is," he told Reuters in an interview on Sunday. "What's important, too, is that we are growing."

Reuters reported that Bessent argued the United States remained in a stronger position than many advanced economies because its economy continued to grow despite its large fiscal deficits.

Global trade imbalances are expected to take centre stage on Tuesday. Bessent said he would ask G20 members to reassess their terms of trade with China and put pressure on Beijing to rebalance its economy towards domestic consumption and away from exports.

"The world cannot have ​a China with a $1.2 trillion trade surplus," Bessent said in the Reuters interview. "In China, the economy is quite weak, and they are trying to export their way out of it, and they need to rebalance their economy."

Economists have said the United States also needs to reduce its growing fiscal deficits as part of efforts to rebalance the global economy.

French Finance Minister Roland Lescure said the world's major economic blocs each had responsibilities in addressing the imbalance.

"We need a more balanced ​world," French Finance Minister Roland Lescure said. "We know that every big zone, whether China, the U.S. and Europe, has got their own homework to do."