Russian gold imports will be prohibited by the UK, US, Canada, and Japan in an effort to limit Moscow's capacity to finance the conflict in Ukraine. The measure, according to the UK prime minister, "strikes at the heart of Putin's military machine."
The UK reports that since the invasion, the value of Russia's gold exports has surged as oligarchs hurry to acquire bullion to dodge sanctions, totaling £12.6 billion ($15.4 billion) in 2021.
It happens at the same time as the G7 summit of the world's richest countries in Germany. German, French, and Italian members of the G7 were mentioned by US Vice President Biden as joining the embargo.
The G7 will jointly declare that we would forbid the import of Russian gold, a significant export that generates tens of billions of dollars annually. Boris Johnson, the prime minister of the United Kingdom, said, "We must stop subsidising the Putin government. That is what the UK and our allies are doing.
The UK government predicted that the decision would have a significant impact on President Putin's capacity to raise money given that London is a significant worldwide trading centre for gold.
Western nations have implemented a number of sanctions since Russia invaded Ukraine in February that target affluent people, banks, companies, and state-owned organisations.
More than 1,000 Russian people and companies have already received sanctions from the US, the EU, the UK, and other nations. As a result of the most recent action, UK import restrictions will be placed on Russian products worth about £13.5 billion.
The UK said that legislation will be tabled in and the gold import restriction would go into effect soon. It will be applicable to newly mined or processed gold; it has no bearing on gold that has already been exported from Russia.
There are no intentions to impose additional limitations on Russian gold that was lawfully obtained prior to the import ban.
The international reaction to the conflict in Ukraine, as well as rising prices and the world food crisis, are anticipated to be the main topics of discussion at the G7 meeting in Bavaria.