U.S. Considers Proposal to Freeze Russian Gold Reserves

SEATTLE (Scrap Monster): The U.S. Treasury Secretary is scheduled to meet a bipartisan group of Senators this week. The meeting will debate the proposal to freeze Russian gold reserves worth $132 billion.

According to Maine Senator Angus King, the massive gold supply is one of the few remaining assets that Russia could use to prevent further fall in the country’s economy. The sanctions on gold reserves will further isolate Russia from the world economy and make it difficult for the country to continue its costly military campaign in Ukraine. King expressed the hope that the legislation could pass the Senate as early as this week itself.

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The move will kill the opportunity for Russia to mitigate the impacts of sanctions by the Western world by monetising its large gold reserves. The U.S. alleged that Russia is using gold to hinder the devaluation of Ruble.

The vast gold reserves will be used by the Kremlin to purchase high-value currencies on the international market, it noted. The bill titled “Stop Russian GOLD” was introduced on March 8^th, with the aim of closing this loophole that allows trading of Russian gold. The proposed legislation will allow the U.S. administration to impose additional sanctions to anyone selling or buying gold that belongs to the Russian central bank.