G7 needs to raise pressure on Russia, von der Leyen says

By John Irish

KANANASKIS, Alberta (Reuters) -More pressure must be exerted on Russia to secure a ceasefire in Ukraine urging the G7 nations to ramp up sanctions to achieve that goal, European Commission President Ursula von der Leyen said on Sunday.

Leaders of the world's largest industrial nations are meeting in Canada's Rockies with European countries seeking to keep the war in Ukraine firmly on the mind of U.S. President Donald Trump despite fighting breaking out between Israel and Iran in the Middle East.

With diplomacy at a standstill, the European Union is set to adopt a new sanctions package on Russia, but have so far failed to convince Trump - who has been reluctant to weigh on Russian President Vladimir Putin - to impose new U.S sanctions.

"We must put more pressure on Russia to secure a real ceasefire, to bring Russia to the negotiating table and to end this war, sanctions are critical to that end," von der Leyen told a news conference before Britain, Canada, France, Germany, Italy, Japan and the United States begin talks on Monday.

"Last week, we put forward a proposal for an 18 sanctions package. I will invite all G7 partners to join us in this endeavour."

Global attention has turned to the Middle East, where strikes by Israel on Iran have raised the risks of an escalation into a broader regional conflict. The subsequent oil price spike has added to concerns over the global economy.

Von der Leyen said that in talks with Trump on Saturday the two had agreed that like-minded countries should safeguard market stability, notably in the energy markets.

"We will also stay very vigilant (on) what the implications for the international energy markets are concerned," she said.

Regarding trade negotiations with the Trump administration, she said she preferred a negotiated solution ahead of a July 9 deadline, but that the bloc was preparing contingencies in the event no agreement was reached.

Von der Leyen also spoke to Israeli Prime Minister Benjamin Netanyahu earlier on Sunday.

She reiterated Israel's right to defend itself, but stressed that a diplomatic solution was the best option in the long-term to address Iran's nuclear programme.

"Iran is the principal source of regional instability, and we've always been very clear, Iran can never have a nuclear weapon," she said.

"The recent events have underlined the increasing interlinks between the conflicts in Europe on one hand and the Middle East on the other hand. The same type of Iranian designed and made drones and ballistic missiles are indiscriminately hitting cities in Ukraine and in Israel."

(Reporting by John Irish; Editing by Kim Coghill and Shri Navaratnam)