Foreign ministers of the G7 group of rich democracies have warned Russia of “massive consequences” if it invades Ukraine and urged it to de-escalate its military buildup on its border. A communique from the meeting in Liverpool said the group reaffirmed its “unwavering commitment to Ukraine’s sovereignty and territorial integrity, as well as the right of any sovereign state to determine its own future” and praised what it called Ukraine’s “restraint” as tensions grew. “Any use of force to change borders is strictly prohibited under international law. Russia should be in no doubt that further military aggression against Ukraine would have massive consequences and severe cost in response,” the statement said, after a weekend meeting dominated by discussion of Russia’s movement of weapons and troops to the border region. The UK foreign secretary, Liz Truss, said all forms of economic sanctions against Russia were on the table if it made an incursion into Ukraine, and hinted she may be prepared to look again at the UK’s laws against money laundering, seen by some as a way for Russian elites to stash their cash. She said an invasion would come with a “severe cost” for Russia. The Kremlin spokesperson, Dmitry Peskov, told Russian media on Sunday it was being demonised for moving its troops within its own borders and said Vladimir Putin had told Joe Biden in a video call last week that Russian troops did not pose a threat to anyone. Economic sanctions could include restricting access to global finance markets and setting new conditions on funding Russian government debt. Cancelling Russia’s Nord Stream 2 gas pipeline to Germany is also on the agenda. On Sunday Germany’s new foreign minister Annalena Baerbock said the pipeline will not be allowed to operate in the event of any new “escalation” in Ukraine, under an agreement between Berlin and Washington. “In the event of further escalation this gas pipeline could not come into service,” Baerbock told German television station ZDF, clarifying earlier threats made by Chancellor Olaf Scholz. Although all foreign ministers at the G7 – a gathering that collectively represents 50% of global GDP – were clear that they had to send the strongest possible signal to Putin not to invade Ukraine, there were differences of emphasis on the best kind of sanctions, and whether G7 domestic laws needed to be reviewed. Truss said the UK was considering all options, when asked if she was willing to launch a review of anti-corruption laws in the wake of criticism that London has acted as a haven for kleptocrats. “We do have very strong anti-corruption and money laundering laws in the UK, but let us be clear: when the UK has wanted to send clear messages and achieve clear goals, we have been prepared to use economic sanctions, so we are considering all options and together with our allies, including the US and our G7 partners, we have been very clear there would be severe consequences,” she said. It was not clear from her reference to “all options” how far Truss intended to go. EU foreign ministers in Brussels on Monday are likely to announce the start of a process to impose sanctions on the Russian private military contractor Wagner Group. Moscow denies Wagner is linked to the Russian state but has said the EU would face retaliation over any sanctions on its citizens. The move is being pushed forward by France, which is concerned by the scale of Wagner Group intervention in the Sahel region of Africa. US intelligence assesses that Russia could be planning an offensive on Ukraine involving up to 175,000 troops as early as next year. Moscow has denied it plans to invade and demanded security guarantees that Nato will not expand farther east or place its weapons close to Russian territory. In 2014 Russia seized the Black Sea peninsula of Crimea from Ukraine, prompting the west to impose sanctions. Truss said Iran had a last chance to come back into compliance with the 2015 nuclear deal. Foreign leaders in Liverpool exchanged notes on whether they believed Iran was being serious in seeking a deal in the talks in Vienna, or was instead playing for time. Negotiators from Europe, Russia, China, the US and Iran have stayed in the Austrian capital over the weekend to work on a possible text under which the US would lift sanctions against Iran, leading to Tehran’s return to the nuclear deal. “This is the last chance for Iran to come to the negotiating table with a serious resolution to this issue, which has to be agreeing the terms of the JCPOA [joint comprehensive plan of action],” Truss said. “This is their last chance and it is vital that they do so. We will not allow Iran to acquire a nuclear weapon.” European diplomats claim that Iran’s behaviour cannot be seen as a true effort to secure a deal. It is likely that if talks do not make progress at the speed required by the US and Europe, a discussion at leaders’ level will be called to decide whether to refer Iranian non-compliance with the 2015 deal to an emergency board meeting of the UN’s nuclear inspectorate. That would signal the start of the final collapse of the deal. At the same time, however, diplomats stressed that some progress had been made over the past three days because Iran was no longer insisting that talks focused on drafts the newly elected government had prepared. The G7 members, joined by members of the Association of Southeast Asian Nations, spent the evening at the Beatles Museum, which has a Cavern club mockup inside, and went to Anfield, the home of Liverpool football club, for lunch.