G-7 Nations Imposed Ban on Fresh Imports of Russian Gold

SEATTLE (Scrap Monster): The U.S., UK, Japan and Canada will ban imports of new gold from Russia, as part of the efforts by developed countries to tighten the curbs on Russia, in response to its invasion of Ukraine.

The decision was announced ahead of the meeting of the G-7 leaders in Germany. The ban will come into effect shortly and will be applicable to newly mined or refined gold. Meantime, the ban will not apply to previously-exported Russian-origin gold, the statement noted.

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UK Prime Minister Boris Johnson said that the measures announced today are likely to directly hit Russian oligarchs and strike at the heart of Putin's war machine. The UK and its allies are committed to starve the Putin regime of its funding, he said.

Gold has been the second highest export item from Russia after energy in recent years. It accounted for almost 5% of global gold exports in 2020. Nearly 90% of gold exported from Russia were to G-7 countries. Out of this, over 90% were exported to the UK.

Meantime, analysts noted that the plan by G-7 countries to ban new gold imports from Russia is “largely symbolic”, as flows of the commodity have already been restricted on account of sanctions imposed earlier on that country by developed countries. It must be noted that the London Bullion Market Association (LBMA) had suspended accreditation for six Russian precious metals refiners in March.