“We must turn off the money supply”: G7 countries ban the import of gold from Russia

“I have to turn off the money supply”
The G7 countries ban the import of gold from Russia

Due to the war in Ukraine, the G7 countries are taking another step towards further isolating Russia from the international financial system. In the future, the gold trade between the industrial powers and Russia is to be banned – a billion-dollar cut for the Kremlin.

According to US President Joe Biden, the G7 countries want to declare a ban on Russian gold imports at their summit in Bavaria. Biden said on Twitter that Russia would lose several billion dollars in revenue from this important export commodity. According to US government circles, the import ban will be imposed on Tuesday. Due to the Russian offensive war against Ukraine, the G7 countries have already adopted harsh sanctions against Moscow.

British Prime Minister Boris Johnson said the move would “hit Russian oligarchs directly” and attack “the heart of President Vladimir Putin’s war machine.” “We must turn off the money supply to the Putin regime.”

Sanctions against Russia in gold trade are also being discussed in the EU. However, this has not yet been decided. EU countries among the G7 countries are Germany, France and Italy.

Gold is Russia’s most important non-energy export, the British government said. Exports to the Russian economy were worth £ 12.6 billion (€ 14.6 billion) last year. “Its value to Russia’s elite has also increased in recent months as oligarchs buy precious metals to avoid the financial impact of Western sanctions.”

Given London’s central role in international gold trading and the parallel measures taken by the US, Japan and Canada, the import ban will have “global effects and exclude the commodity from official international markets,” the British government said. The goal of the golden sanctions is “further isolation of Russia from the international financial system.”

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