The G7 member states are banning gold imports from Russia. This was announced at the G7 summit in Bavaria. The move is part of a crackdown on sanctions on Moscow aimed at cutting off funding for Russia’s war in Ukraine.
“The measure we have announced today will deal a direct blow to the Russian oligarchs and will hit Putin in the heart with a war machine.
We must stop the flow of funding to the Putin regime. That is what the United Kingdom and its allies are doing,” said Boris Johnson, Prime Minister of the United Kingdom.
A spokesman for the U.S. administration said the Big Seven would make an official statement banning gold imports on Tuesday.
“These are important exports, the main source of income for Russia in dealing with the world financial system,” said a U.S. official.
According to British authorities, Russia’s gold exports totalled 12.6 billion pounds last year. It is noteworthy that wealthy Russian citizens were buying gold bars to reduce the financial impact of Western sanctions.
A source from a major news agency said that in addition to banning gold imports, the G7 leaders are also considering imposing a maximum tax cap on Russian oil imports.
Gold is the largest asset of the Central Bank of Russia, and the country produces nearly 10% of its gold annually, making it the second-largest supplier all over the world. The country’s gold reserves tripled in 2014 after the annexation of Crimea.
Russians are facing limitations in accessing some of their assets held abroad because of Western sanctions.
The joint action was taken by the U.K., Japan, Canada and the U.S. ” will directly hit Russian oligarchs and strike at the heart of Russian President Vladimir Putin’s war machine,” said British PM Boris Johnson.
Countries worldwide, especially western countries, are imposing embargoes on Russian products to teach them a lesson by crippling their economy so that Moscow stops financing the war.