Group to ban Russian gold

Elmau, June 26

President Joe Biden said Sunday that the United States and other Group of Seven leading economies will ban imports of gold from Russia, the latest in a series of sanctions that the club of democracies hopes will further isolate Russia economically over its invasion of Ukraine. A formal announcement was expected on Tuesday as the leaders hold their annual summit.

Senior Biden administration officials said gold is Moscow’s second largest export after energy, and that banning imports would make it more difficult for Russia to participate in global markets.

British Prime Minister Boris Johnson said the ban on Russian gold will “directly hit Russian oligarchs and strike at the heart of Putin’s war machine,” a reference to Russian President Vladimir Putin. “We need to starve the Putin regime of its funding,” he said. In recent years, gold has been the top Russian export after energy – reaching almost $19 billion or about 5% of global gold exports, in 2020, according to the White House.

Of Russian gold exports, 90 per cent was consigned to G-7 countries. Of these, over 90 per cent or nearly $17 billion was exported to the UK. The US imported less than $200 million in gold from Russia. — AP