G7 leaders to announce ban on Russian gold imports

G7 leaders to announce ban on Russian gold imports

 A number of countries such as the United States, Britain, Japan and Canada have imposed new sanctions on Russia. The sanctions are in the form of a ban on gold imports from Russia, as stated by the President of the United States (US), Joe Biden, Sunday (26/6/2022). The statement is part of a new round of sanctions against Russia since it invaded Ukraine on February 24, 2022. Biden said the US would charge Russian President Vladimir Putin for denying the revenue needed to fund the war in Ukraine. 

"Together, the G7 will announce that we will ban imports of Russian gold, a key export that generates tens of billions of dollars for Russia," Biden said on Twitter. In a separate statement, the British government said the restrictions would apply to newly mined or refined gold. The sanctions will not affect gold of Russian origin that has previously been exported from Russia. According to Reuters, Russia's gold exports were worth 12.6 billion pounds ($15.45 billion) last year. 

Meanwhile, wealthy Russians have recently been buying gold bullion to mitigate the financial impact of Western sanctions, the government said.
"The measures we are announcing today will hit the Russian oligarchs directly and strike at the heart of Putin's war machine," Prime Minister Boris Johnson said. "We need to starve the Putin regime in its funding. The UK and our allies are doing just that." The latest initiative follows the March suspension of the London Bullion Market Association (LBMA) accreditation for six Russian precious metal refiners. 

Quoted by Ndtv, a senior US government official said the G7 will announce a ban on Russian gold imports on Tuesday (28/6/2022). The upcoming announcement is part of an ongoing effort to hold Russia accountable for its war in Ukraine and block efforts to evade Western sanctions. According to TASS, the European Union has adopted six packages of sanctions against Russia and Belarus since the start of Moscow's invasion of Ukraine on February 24. 

Several sectors, including gas, remain largely untouched as EU governments avoid actions that could damage their own economies more than Russia. "Work will continue on sanctions, including to strengthen implementation and prevent circumvention," EU leaders said at the end of their regular summit on June 23-24, according to an updated version of their draft conclusion dated June 20 and seen by Reuters. The text represented a compromise between the Nordic and eastern countries which prompted a clear reference to the seventh package in the summit statement. Countries like Germany and Belgium are looking to focus on implementing existing measures rather than immediately adding more. 

In previous versions of the text there was no mention of more work on sanctions, with the tweak representing a win for the eagles. However, in line with Germany's wishes, the new text does not explicitly refer to the seventh package. While no new packages are being prepared, work is underway to identify sectors that could be hit, officials said.

Next Post Previous Post
Update cookies preferences