Rift over Syria overshadows G20 summit

The rift over Syria has cast a shadow over the summit of the Group of 20 (G20) developed and developing economies at St Petersburg that aims to forge a united front to support economic growth and trade while ensuring banking transparency and fighting tax evasion.

Although Syria is not officially on the G20 agenda, any joint action on the economic front will depend on how the different countries line up on the impending crisis that could affect most nations of the world.

China, which was quick to join Russia in opposing US action and vetoed a UN Security Council resolution on the issue, is expected to oppose any proposals by the US and other Western powers that are consistent with their Middle East policies.

While China and Russia have insisted that any solution to the Syrian crisis should be political and that there should be no attempt to impose pressure on the Assad government, countries like India and Indonesia are expected to toe a softer line.

China, meanwhile, warned that any military intervention in Syria would hurt the world economy and push up oil prices.

The G20 grouping that accounts for two thirds of the world's population and 90 per cent of its output is also divided over the present turmoil in emerging markets and the Federal Reserve's decision to end its monetary expansion.

The rift is expected to widen further with the US-Russia collision over the possible military intervention in Syria to punish President Bashar al-Assad over a chemical weapons attack that killed hundreds of people on 21 August.

Putin, who was isolated on Syria at a Group of Eight meeting in June, now has the backing of China and possibly some other countries at the G20 summit in Russia's former capital.

"Military action would have a negative impact on the global economy, especially on the oil price - it will cause a hike in the oil price," Chinese vice finance minister Zhu Guangyao told a briefing before the start of the G20 leaders' talks.

While Obama is unlikely to win many of its own allies for the military intervention, France has been steadfast in its support of US on its Syria stance.

"The position of France is to punish and negotiate," foreign minister Laurent Fabius told France 2 television before leaving for the G 20 summit in St Petersburg.

"We are convinced that if there is no punishment for Mr. Assad, there will be no negotiation," he added. "Punishment will allow negotiation, but obviously it will be difficult."

Putin has said he would like to hold one-on-one talks with Obama but a Kremlin spokesman said no such meeting was planned.

Foreign ministers from key states in the G20 - which includes all five permanent UN Security Council members - will also discuss Syria on the sidelines of the meeting.

Putin is expected to seek a consensus to avert military action in what would be a significant but unlikely development.