Russia's Putin would be ready to host G7 in Moscow

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Adding an extra layer of friction to the gathering, Trump suggested that Russian Federation - which was expelled following the annexation of Crimea - should be allowed to rejoin the group.

The meeting was held ahead of the annual summit of the Shanghai Cooperation Organisation, a regional security grouping jointly led by Beijing and Moscow, in the coastal city of Qingdao over the weekend.

"The president's support for inviting Russian Federation back into the G-7, just after they meddled in the election to support his campaign, will leave millions of Americans with serious questions and suspicions", Schumer said.

Speaking at an worldwide summit in the Chinese city of Qingdao on Sunday, Rouhani said the US' withdrawal from the Iran nuclear deal poses a potential threat to the world.

Lavrov said on national television that Russian Federation "never asked anyone to return" to the Group of Seven following the 2014 decision to suspend Russian Federation over Moscow's annexation of Crimea.

Putin's remarks follow a report that White House officials were working toward setting up a meeting.

"President Trump has placed himself on the wrong side: with the autocrats, the corrupt, and the anti-Americans, who look to Vladimir Putin as a natural ally", said Daniel Fried, a former career diplomat who oversaw sanctions on Russian Federation after its Ukraine intervention.

The American leader has repeatedly said he wants to improve relationships with Moscow.

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Chinese premier Xi Jinping has awarded his country's Friendship Award to Vladimir Putin, calling the Russian president his "best, most intimate friend".

"President Putin is the leader of a great country who is influential around the world", Xi said.

He emphasised that the bloc's members, who also include China, four ex-Soviet Central Asian nations, as well as India and Pakistan, are anxious about the United States move.

"Dialogue may prove to be constructive", he said in the interview, the full version of which was released on Saturday. I think it would be good for the United States.

"We oppose the practice of sacrificing other countries' security for their own absolute security", Xi told a gathering of the SCO's heads of state in the Chinese port of Qingdao. "We positively view the intentions of Pyongyang, Seoul and Washington to reach a comprehensive settlement of the crisis through talks".

"We have reiterated the very high level of our relations with China".

President Mamnoon Hussain and his Iran counterpart Hassan Rouhani agreed to bolster economic ties between the countries in a meeting held on Saturday in Qingdao, China.

Trump announced the US would leave what he called the "horrible" Iran nuclear accord in May. The bloc includes China, Russia along with four ex-Soviet Central Asian nations, as well as India and Pakistan.

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