Before arriving in Canada, British Prime Minister Theresa May called on fellow European Union leaders to take proportionate responses to the USA tariffs and shrugged off a rebuff by Trump for a formal one-on-one meeting at the G-7.
A senior Government source said: "The PM has always said we should engage with Russian Federation but beware".
Peskov was quick to add, according to the report, that discussions between Trump and Putin on the issue are purely in the preliminary stages. "They understand. They're trying to act like, "Well, we fought with you in the wars" but they don't mention the fact that they have trade barriers against our farmers, they don't mention the fact that they're charging nearly 300-per-cent tariffs".
US President Donald Trump said on Friday that Russian Federation should attend the G7 meeting.
"Looking forward to straightening out unfair Trade Deals with the G-7 countries".
"If there are to be any conversations about Russia's future in relation to this particular group, they have to change their ways, they have to change the route that they are taking and the sort of activity they are involved in", Mrs May said. France's Emmanuel Macron has warned he won't sign a joint statement unless Trump makes concessions on trade.More news: Costa Rica - International friendlies - 7 June 2018
Trump's deteriorating relationships with Trudeau and Macron - both of whom he has previously lavished with praise - come as the USA finds itself increasingly isolated from key allies over Trump's isolationist policies, including his decisions to pull out of the Paris climate agreement and to withdraw from the Iran nuclear deal.
Russia was ousted from the elite group in 2014 as punishment for President Vladimir Putin's annexation of Crimea and support for pro-Russian separatists in Ukraine.
"This is the first time for China to award a foreign leader a friendship medal since it was set up in January 2016, which reveals that China attaches great importance to the China-Russia ties", Li Guofu, a researcher at the China Institute of International Studies in Beijing, told the Global Times on Friday.
On Xi's last visit to Moscow, in July 2017, Putin made him a member of the Order of St Andrew, Russia's highest chivalric order.
Mrs May also pushed for action to tackle Russian "dirty money" and work to curtail the movement of Moscow's spies.
"Both countries really use their relationship to showcase [that] there is an alternative to the American hegemony, and they've been doing that for a while even before Trump", she said.
At the G7, only Italy's new populist Prime Minister Giuseppe Conte said he agreed that Moscow should be back in the fold. "In the interest of all".