Vienna is one of the cities being considered as the venue for a possible summit between Russian President Vladimir Putin and his US counterpart Donald Trump, Kremlin spokesman Dmitry Peskov told reporters on Saturday.
"Whether you like it or not, and it may not be politically correct, but we have a world to run", Trump continued.
"Russia should be in this meeting", Trump told reporters in Washington.
But the US President recommended Russian Federation be re-invited into the club, insisting Moscow should have a seat at the table.
Before leaving Washington this morning, Mr Trump caused fresh controversy by suggesting Russian Federation should be invited back into the G7, to reform the G8, after Vladimir Putin was kicked out in 2014 after his annexation of Crimea.
Trump's presidency has been clouded by a federal investigation into Russian meddling into the 2016 USA election and possible coordination by people in Trump's campaign.
The agreement is based on greater intelligence sharing between the countries of the G7 group of industrialised nations - Canada, France, Germany, Italy, Japan, UK and the U.S. - and aims to identify, prevent and respond to hostile state activity including cyber-attacks.
Trump's Russian Federation comment won a quick endorsement from Italian Prime Minister Giuseppe Conte, who said on Twitter that Russia's re-admission would be "in everybody's interest".
Host Canada and its European allies are striving to put together a united front to oppose Trump's tariffs of aluminum, steel, cars and other exports, but the markets are rattled.
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The tone in the immediate run-up to the meetings at La Malbaie showed no sign of compromise between a USA president determined to disrupt the status quo to force more favourable terms for the United States, and six U.S. allies resolved to stop him.
Putin pointed out that Trump has been implementing the promises he made during his election campaign.
And he warned it was now the U.S., and not "usual suspects" such as Russian Federation, which posed the biggest threat to the current, Western-led global order.
"Looking forward to straightening out unfair Trade Deals with the G-7 countries".
The commander in chief plans to skip the climate change and environment portion of the G7 and leave early for Singapore for his historic meeting with North Korean dictator Kim Jong Un. France's Emmanuel Macron has warned he won't sign a joint statement unless Trump makes concessions on trade.
"We need the president to be able to distinguish between our allies and adversaries, and to treat each accordingly", he said in a statement.
Trump joined the leaders of major industrialized nations in an idyllic Canadian resort town after days of escalating conflict over new U.S. tariffs he slapped on imports of steel and aluminum.
But Tusk also said the tensions within the G7 now are a serious challenge to its unity and effectiveness.
As tempers frayed, Trump had a ready retort, via tweet: "Please tell Prime Minister Trudeau and President Macron that they are charging the US massive tariffs and create non-monetary barriers. It it doesn't happen, we come out even better", he tweeted on Friday morning. Putin stated that the penultimate goal in terms of economic relations between the two countries is integrating and harmonising the One Belt-One Road initiative with the Eurasian Economic Union in order to create and expand a dynamic free trading zone throughout the wider east Asian and Eurasian space whose potential can unleash productivity throughout the region.