G7 to ban the import of gold from Russia

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G7 to ban the import of gold from Russia

US President Joe Biden and his G7 counterparts will agree to ban the import of new gold from Russia as they expand sanctions on Moscow over its war against Ukraine, Reuters has learned from its sources. The United States has brought the world together to impose swift and significant economic sanctions on Russia in order to deny Vladimir Putin the means to wage war against Ukraine.

According to the source, the U.S. Treasury Department will issue a decision to ban imports of new gold into the U.S. on Tuesday, in a move aimed at further isolating Russia from the global economy by preventing its participation in the gold market.

Western sanctions on Russia were not directly targeted at commercial shipments of gold, but many banks, freight forwarders, and refineries stopped trading in Russian metals after the war in Ukraine began. "President Biden and the rest of the G7 leaders have agreed to announce an import ban on new gold from Russia, CNN is told.

Gold is the second-largest export for Russia after energy. The Treasury Department will make the formal announcement Tuesday." Kaitlan Collins. According to Reuters Switzerland imported gold from Russia. "Switzerland received 3.1 tonnes of gold worth around $200 million from Russia in May, accounting for around 2-3% of its total gold imports, the customs data show."

Russia produces about 10% of the world's gold

Gold is a key asset of the Russian central bank, which has faced restrictions on access to some parts of its assets abroad due to Western sanctions. Shares of Russian gold ores traded abroad have fallen this year due to difficulties, including selling gold and repaying loans to banks under sanctions.

Russia produces about 10% of the world's gold mined annually, and its gold funds have tripled since it annexed Crimea in 2014. The group of 7 most developed democracies in the world consists of the USA, Great Britain, France, Italy, Germany, Japan, and Canada. These are the countries that lead the free world in sanctions against Russia after the invasion of Ukraine.