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4 G7 Member Countries Ban Russian Gold Imports

LONDON, KOMPAS.com – Four G7 member countries will ban gold imports from Russia in a new bid to stop oligarchs from buying the precious metal to avoid the impact of sanctions on Moscow over invasion of Ukraine.

Among these actions were taken by the UK, Canada, Japan, and the United States.

The value of gold exports to the Russian elite reportedly increased during the Russo-Ukrainian war. This has happened since the wealthy in the country led by President Vladimir Putin have tried to evade the sanctions.

“(The four G7 powers) will directly hit the Russian oligarchs and strike at the heart of (President Vladimir) Putin’s war machine,” said British Prime Minister (PM) Boris Johnson, Sunday (26/6/2022), quoted from the UK’s Prime Minister (PM) Boris Johnson. AFP.

Also read: Ukraine Update: After 3 Weeks of Silence, 4 Explosions Heard in Kyiv

Given Britain’s central role in international gold trading and the parallel actions of the US, Japan and Canada, he believes this move will have global reach, shutting the commodity out of formal international markets.

Worth 12.6 billion pounds (15.5 billion US dollars or around Rp. 229.86 trillion) to the Russian economy in 2021, gold is the main export for the country.

With Putin’s Russia now under heavy sanctions, the country’s richest people have reportedly been rushing to turn their assets into gold to avoid the impact of financial curbs.

London Bullion Market has suspended six Russian refineries which were announced on 7 March.

The latest move targeting the commodity comes as leaders of the Group of Seven richest nations meet in the Bavarian Alps, with their talks to focus on how to maintain support for Ukraine against a Russian invasion.

Also read: Ukraine Latest: Russian -controlled Severodonetsk

The G7 is expected to consider how the unprecedented sanctions taken against Moscow have worked so far, discuss further financial and military aid for Ukraine, as well as look at a longer reconstruction of the war-torn country.

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