Four G7 powers ban gold export from Russia
3 Min Read
The United Kingdom, Japan, Canada, and the United States are imposing harsh sanctions on the Russian gold market, completely prohibiting Moscow from exporting gold.
-
Bars of Russian gold (Bloomberg)
Four G7 countries are set on banning Russian gold exports in a new bid to force Moscow into fully absorbing the repercussions of the sanctions imposed on the country in light of the Ukraine war by stopping it from buying the metal to avoid the brunt of the restrictive measures, the United Kingdom said Sunday.
The decision was taken by the United Kingdom, Canada, Japan, and the United States, with British Prime Minister Boris Johnson claiming that the action would "directly hit Russian oligarchs and strike at the heart of [Russian President Vladimir] Putin's war machine."
Due to the central role that the United Kingdom has in the international gold trade and the action taken by the United States, Japan, and Canada, "this measure will have global reach, shutting the commodity out of formal international markets," London said.
Gold is one of Russia's key exports, and the precious metal is worth some $15.5 billion to the Russian economy in 2021. Gold is commonly used in times of turmoil by countries and civilians to avoid the repercussions of currency devaluation.
The London Bullion Market had already suspended six Russian refineries on March 7 in a bid to further corner the country's economy.
The latest move against Russian gold came as the G7 member states are holding a summit in Germany with various issues in mind, mainly focusing on means of sustaining backing for Kiev against Moscow.
In a statement, the WH said that Biden and his G7 counterparts will discuss a wide array of global issues that it claimed were "the most pressing," which include G7 support for Ukraine, economic and democratic resilience, the climate crisis, the development of infrastructure, global health, and the ongoing energy and food crisis.
The G7 countries held their last meeting in Germany last month, where they discussed the Ukraine war, China, and the situation in the Indo-Pacific region, Afghanistan, Africa, and West Asia.
The nations are also expected to look into the ramifications of the sanctions on Russia and how they have worked so far, discuss further financial and military support for Ukraine, and look into the prospect of reconstruction for the country.
The two meetings come about four months after the start of the war in Ukraine, exposing Biden's leadership failures, particularly in sanctioning Moscow over its oil, on which Europe is more dependent than the US.
