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Ukraine: the G7 wants to ban Russian gold | War in Ukraine

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The leaders of France, the United States, the United Kingdom, Germany, Italy, Canada and Japan meet for three days in a castle in Bavaria, in the south of Germany, when some fear a form of fatigue in support for kyiv.

Together, the G7 will announce that we will ban Russian gold, a major export source, which will deprive Russia of billions of dollarstweeted US President Joe Biden.

Pending a collective announcement after the meeting on Tuesday, Washington, London, Ottawa and Tokyo have already announced an embargo on newly mined gold in Russia, without targeting that already sold.

These measures will directly hit the Russian oligarchs and attack the heart of Putin’s war machine.British Prime Minister Boris Johnson said in a statement.

Putin is squandering his dwindling resources on this useless and barbaric war. He feeds his ego at the expense of the Ukrainian and Russian peoplehe added, calling on his allies to starve Russian power.

Russia is a major gold-producing country whose exports represented nearly 15 billion euros (about 20.4 billion Canadian dollars) in 2021, or 5% of the world market according to London and Washington.

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The precious metal is the second product exported by Russia after energy, already in the sights while Westerners are already banning Russian oil and seeking, for Europeans, to reduce their dependence on Russian gas.

Russian gold mainly exported to G7 countries

The goal is to isolate Russia from the international financial system and avoid financing the Russian war effort by paying Moscow billions in imported resources.

The gold embargo constitutes an additional means of blocking the links between the Russian economy and the financial system, explained a senior American official. The effect of sanctions is only accumulating over time and Russia’s ability to wage war will shrink due to the collective actions the G7 is takinghe added.

Ninety percent of Russian gold exports are directed to G7 countries and overwhelmingly to the United Kingdom, with London hosting the main financial center for trading commodities, including metals.

The measure announced will therefore have huge impact on Putin’s ability to raise funds, insisted the British government. This will particularly hit the Russian elites who were able to buy gold in an attempt to circumvent Western sanctionshe added.

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The UK has imposed among the toughest Western sanctions against Russia since it began an invasion of Ukraine four months ago, targeting the financial sector, oil, dozens of oligarchs, representing in total more than 00 entities and 1000 people.

On Saturday evening Boris Johnson, who has visited Kyiv twice in recent months, urged his allies not to to abandon Ukraine, whose President Volodymyr Zelensky is to speak Monday by videoconference to the G7.

The spokesman for the British leader maintained that after four months of war, this support, economic but also military, should come into a new stagethe question being its nature, which must be debated in Bavaria and then at the top of theNATO to Madrid.

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