The Magazine for Asian Investors
According to U.S. government officials, G7 countries are preparing to ban Russian gold imports to increase pressure on Russia to end its war in Ukraine. An official statement is to be issued on Tuesday (June 28), the last day of the G7 meeting in Germany.
“Gold, after energy, is the second-largest export for Russia and a source of significant revenue for President Vladimir Putin and Russia,” the U.S. official said, adding that the blocking of Moscow’s gold sector “will further isolate Russia from the global economy”.
Russian gold exports were worth $15.2 billion in 2021 and are becoming increasingly important following the Russian invasion of Ukraine. This is because gold bullion can be sold to avoid the effects of sanctions.
At the same time, London is an important gold transshipment center in the world. The British sanctions would have a serious impact on Russia.
The U.K. government stated that this gold import ban will apply to newly mined or recovered gold. However, it does not apply to Russian-owned gold that was previously exported from Russia.
Russia accounted for about 5% of all gold exports in 2020, and 90% of Russian exports go to G7 countries, most of them to the UK.