G-7 countries have banned Russian gold imports

The move would add to the series of penalties imposed on Russia by Western nations since the start of the February 24 invasion of Ukraine.

Maxim Shemedov | Reuters

On Sunday morning, US President Joe Biden confirmed that G-7 leaders would suspend Russian gold imports for Moscow’s unprovoked occupation of Ukraine.

When leaders meet in Munich, Germany for the latest G-7 summit, Biden took to Twitter to confirm Previous reports of an immediate ban.

“The United States has imposed unprecedented costs on Putin in denying him enough revenue to finance his war against Ukraine,” he said early Sunday.

“Together, the G7 will announce a ban on Russian gold imports, a major export to Russia that could fetch tens of thousands of dollars.”

The move would add to the series of penalties imposed on Russia by Western nations since the start of the February 24 invasion of Ukraine.

Sanctions are aimed at crushing the Russian economy, and include sanctions or restrictions on oil and gas imports and trading with Russian banks and individuals. In fact, The United States, Canada and their European allies agreed in February to remove major Russian banks from SWIFT, an interbank news agency.Effectively disconnecting the country from much of the world financial system.

Tuesday announcement

On Sunday the UK government confirmed the move to ban Russian gold imports, saying it would apply to freshly mined gold and refined gold – except gold that may have come from Russia but had already been exported.

Russia is the world’s second largest gold producer. According to the latest data from the World Gold Council, About 10% of the global output of the piece. Reuters reports that gold has tripled its holdings since the illegal annexation of Crimea in 2104 and that the commodity is a key asset to the Central Bank of Russia – which is already operating under strictly defined conditions.

A senior U.S. executive said Sunday that the ban would be announced on Tuesday, according to Reuters, and that “the president and other G-7 leaders will continue to work to hold Putin accountable.”

Ruble strength

Despite unprecedented sanctions against the Kremlin, The Russian ruble actually hit its strongest level in seven years last week following its February slump.

Of Russia Ruble The dollar reached 52.3 on Wednesday, its strongest level since May 2015, and its rise is cited by the Kremlin as “evidence” that Western sanctions are not working.

In fact, the ruble has actually strengthened so much that Russia’s central bank is actively taking steps to try to weaken it, which it fears will reduce the country’s exports competitiveness.

-Natasha Durak of CNBC contributed to this article.

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