The G7 group of nations, including the United States, has announced a ban on imports of Russian gold, pressuring Moscow with sanctions in an effort to paralyze its war effort in Ukraine.
“Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia,” President Joe Biden said on Twitter.
The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine.
Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.
— President Biden (@POTUS) June 26, 2022
The measure was first raised by Britain as joint action with other G7 members including Canada, Japan, and the United States. All 7 members of G7 nations will be a part of it and unveil the sanctions soon officially.
With Russia’s economy already crippled by Western sanctions against banks, energy companies, airlines, and high-tech and consumer goods, the cornering of the gold market will have a significant impact, according to G7 officials.
London plays a crucial part in the global gold trade, thus Britain claimed that “this move will have global reach, locking the commodity out of legitimate international markets.”
“Gold, after energy, is the second-largest export for Russia and a source of significant revenue for (President Vladimir) Putin and Russia,” the US official said, adding that the blocking of Moscow’s gold sector “will further isolate Russia from the global economy.”
According to the White House, Russia contributed about five percent to the total gold exports in 2020 and 90 percent of Russia’s output was bought by G7 countries — mainly Britain.
The attempt to stamp out Russian gold plays a significant role in economic measures against Moscow announced at the G7’s three-day meeting.
Officials say though sanctions put on Moscow are slow, it has started to hollow Russia’s economy, and Putin’s long-term ability to continue the war on Ukraine, which is in its fifth month, will be fragile.
The gold measure is “an ongoing illustration of the types of steps that the G7 can take collectively to isolate Russia and cut it off from the global economy,” the US official said.
“And those impacts only accumulate over time, such that Russia’s ability to produce, Russia’s ability to wage war are going to decline over time as a result of the collective steps the G7 has taken.”
Meanwhile, Ukrainian Foreign Minister Dmytro Kuleba urged G7 countries to answer the new missile attack on Kyiv by imposing new host of sanctions on Moscow and suplementing more heavy weapons to Ukraine.
Kuleba twitter, “This 7 y.o. Ukrainian kid was sleeping peacefully in Kyiv until a Russian cruise missile blasted her home. Many more around Ukraine are under strikes. G7 summit must respond with more sanctions on Russia and more heavy arms for Ukraine.”
This 7 y.o. Ukrainian kid was sleeping peacefully in Kyiv until a Russian cruise missile blasted her home. Many more around Ukraine are under strikes. G7 summit must respond with more sanctions on Russia and more heavy arms for Ukraine. Russia’s sick imperialism must be defeated. pic.twitter.com/0kn2hl7A4x
— Dmytro Kuleba (@DmytroKuleba) June 26, 2022
In response to Russia’s continous attack on Ukraine, sanctions on Gold, a commodity worth 12.6 billion pounds ($15.5 billion) to the Russian economy in 2021, would bring big blow on Moscow. Notably, the Russian oligarchs are believed to have adopted this valuable metal to conceal their assets from Western sanctions enforcers.
The London Bullion Market has also announced the suspension of six Russian refineries in action on March 7.