Krün, 27 June 2022 (TDI): The United Kingdom, Canada, the United States of America, and Japan; four G-7 members banned imports of Russian gold. In short, this move is an intent to persuade Russian President, Vladimir Putin, to stop the conflict with Ukraine.
The four countries announced the decision during Germany’s G-7 summit. The 48th summit of the G-7 is scheduled to happen from 26 to 28 June 2022.
In the context of the war between Ukraine and Russia, multiple measures have been implemented by various countries to indirectly persuade Russia to stop the conflict. This one adds to the list.
Insight on the Group of Seven
The Group of Seven is made up of France, Germany, Italy, Japan, the United States of America (USA), the United Kingdom (UK), and Canada.
Certainly, the annual summit has become an ideal occasion to discuss and coordinate operations to assess global issues. Besides, the conflict between Russia and Ukraine is for sure one of 2022’s main global issues.
Above all, out of the 7 member nations, four have officially announced that they will officially stop importing Russian gold. These are the UK, US, Japan, and Canada.
As for France, Germany, and Italy, which are members of the European Union (EU), the decision will require more time.
With this move, the group intends to increase pressure on Moscow. The seven members stand united against Russia and want to reinforce the existing pressure.
Further, the annual summit will also host Ukrainian President, Volodymyr Zelensky. He will be present remotely alongside the Ukrainian Minister of Foreign Affairs, Dmytro Kuleba. In addition, Ukraine plans to ask for greater armament deliveries.
Repercussions on the Russian Economy
Unquestionably, the ban on imports of Russian gold is negative for the Russian Economy. After energy, gold is one of its top exports.
G-7 countries are the major importers of Russian gold. Moreover, UK Prime Minister’s shared on his official Twitter account:
Sanctions update:
New Russian gold will no longer be allowed to be exported to the UK, US, Japan and Canada – targeting Putin’s war machine.
UK import restrictions now apply to over £13.5 billion of Russian exports.
— UK Prime Minister (@10DowningStreet) June 26, 2022
In conclusion, the fact that four G-7 members banned imports of Russian gold is a major move against President Putin. After multiple countries restricted imports of Russian oil, this will continue affecting the Russian economy negatively.
