G-7 nations to announce import ban on Russian gold

The move would add to a series of sanctions the West has imposed on Russia since the onslaught of Ukraine began on February 24.

Maxim Shemetov | Reuters

Leaders of the G-7 will announce a ban on Russian gold imports because of Moscow’s gratuitous invasion of Ukraine, US President Joe Biden confirmed on Sunday morning.

When the leaders met in Munich, Germany, for the most recent G-7 summit, Biden took to Twitter to confirm earlier reports of an impending ban.

“The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund the war against Ukraine,” he said early Sunday.

“Together, the G7 will announce that we will ban the import of Russian gold, a major export that brings in tens of billions of dollars for Russia.”

The move would add to a series of sanctions the West has imposed on Russia since the onslaught of Ukraine began on February 24.

The sanctions are aimed at squeezing the Russian economy and include bans or restrictions on oil and gas imports and trading with Russian banks and individuals. Real, The US, Canada and their European allies agreed in February to remove key Russian banks from the interbank messaging system, SWIFT.effectively separate the country from much of the global financial system.

Third Notice

The British government on Sunday also confirmed the move to ban Russian gold imports, saying it would apply to newly mined and refined gold – with the exception of gold that may come from Russia but has already been exported.

Russia is the second largest gold producer in the world, according to the latest data from the World Gold Council, with about 10% of global production. Reuters reports that their gold holdings have tripled since they illegally annexed Crimea in 2104, and the commodity is a vital asset to Russia’s central bank, which operates operating under severely restrictive conditions.

According to Reuters, on Sunday, a senior US administration official said the ban would be announced on Tuesday, adding that “the president and other G-7 leaders will continue to work to hold Putin accountable.”

Ruble strength

Despite unprecedented levels of sanctions against the Kremlin, Russia’s ruble actually hit its strongest level in seven years last week following the fall in February.

Russia’s ruble touched $52.3 on Wednesday, its strongest level since May 2015, and its gains are being seen by the Kremlin as “proof” that Western sanctions aren’t working.

In fact, the ruble has actually appreciated so much that Russia’s central bank is actively taking measures to try to weaken the ruble, fearing that this will cause the country’s exports to fall. become less competitive.

– CNBC’s Natasha Turak contributed to this article.

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