US President Barack Obama and German Chancellor Angela Merkel agreed on the continuation of economic sanctions against Russia until the “full implementation” of the Ukrainian peace accord and Russia’s respect for its neighbor’s sovereignty, the White House said.
"The two leaders discussed the ongoing crisis in Ukraine and agreed that the duration of sanctions should be clearly linked to Russia's full implementation of the Minsk agreements and respect for Ukraine's sovereignty," the White House said in a statement.
The two leader met on Sunday in the Bavarian Alps in Germany before an annual two-day G-7 summit.
The focus for this year’s G7 meeting, hosted by German Chancellor Angela Merkel, will be the global economy and free trade. However, geopolitical issues will also be a hot topic on the agenda.
Other issues will include environmental protection, health and global security policies.
However, the meeting already seem to be overshadowed by the ongoing crisis in Greece and Ukraine.
Russia has been exposed to several rounds of economic penalties by Western powers after it annexed the Crimean Peninsula from Ukraine last year.
The US and its European allies accuses Russia of supporting separatist rebels in Ukraine although Russia denies it.
Russia was locked out of what was previously known as the G8, after Moscow's annexation of Crimea in 2014.
Another crisis which looms over the summit is the Greek debt saga. The cash strapped country and its foreign creditors have been struggling to come to terms on a cash-for-reform deal. Without the release of emergency funds, Greece may possibly head towards a “Grexit” as it faces the risk of defaulting its loans.