Leaders of the G-7 nations are set to announce a ban on Russian gold imports as part of a series of penalties for Moscow’s continued war in Ukraine, US President Joe Biden on Sunday confirmed on Twitter.
The leaders are currently in Munich, Germany, for the latest G-7 summit. According to a senior US administration official, the ban would be announced on Tuesday, which also the last day of the summit.
The ban adds to a series of sanctions that the US and its allies has imposed on Russia since Russian President Valdimir Putin began the unprovoked invasion of Ukraine on February 24.
10% of the global gold output comes from Russia, making the country the second-largest producer in the world. As of the end of first quarter of 2022, Russia has gold reserves amounting to 2301.64 tonnes. The precious metal is a crucial asset for Russia’s central bank, which is already currently operating under rigid conditions from earlier sanctions imposed by the West.
The impact of earlier sanctions have been questioned, especially after the ruble’s strength broke a seven-year record following its collapse in February. The ruble was 52.3 to the dollar on Wednesday, the strongest it’s been since May 2015.
According to a report by CNBC, the ruble has gotten so strong that Russia’s central back is “actively taking measures to try to weaken it, fearing that this will make the country’s exports less competitive.”
Information for this briefing was found via Twitter, CNBC and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.