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US, G-7 nations block gold imports from Russia in new sanctions against Putin


The Treasury Department announced on Tuesday that the United States and several key economic allies would ban imports of Russian gold, Moscow’s biggest export outside of the energy sector.

The expanded sanctions represent the latest attempt by the United States and the Group of Seven to target Russian President Vladimir Putin and alienate the country’s economy from international trade and payment systems.

The UK, Canada and Japan are joining the US effort to ban gold imports from Russia.

Minister of the Treasury Janet Yellen has argued that the multilateral effort to enforce economic sanctions is to paralyze Moscow and severely punish Putin’s ongoing invasion of Ukraine.

The Treasury Department also announced on Tuesday that its penalties now target an additional 70 Russian companies and other entities important to the country’s defense industry and manufacturing base.

“The G7 members’ broad multilateral commitments and actions this week further cut off the Russian Federation’s access to technology vital to the military,” Yellen said in a press release. their”. “Targeting Russia’s defense industry would undermine Putin’s capabilities and further hinder his fight against Ukraine, which is already hampered by poor morale, broken supply chains and logistical failures.”

The Treasury Department said the ban on gold mined in Russia did not apply to metals located outside Russia prior to Tuesday’s announcement.

The decision came as President Joe Biden and other world leaders from the Group of Seven gathered for a meeting in Germany. Countries sympathetic to Ukraine have stopped most trade with Moscow, frozen hundreds of billions of dollars in Russian funds held in foreign accounts, and banned Russian banks from using a global messaging system designed called SWIFT.

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Russian officials and oligarchs were once suspected of ramping up gold production to ease the impact of global restrictions and economic penalties that bankrupted Moscow.

However, it is not yet clear how large the impact of this move will be.

The United States and its partners have struggled to maintain economic pressure on Putin without causing too much backlash to their economies and to China’s continued purchases of Russian goods.

Global petrol prices The spike in the first half of 2022 means that Beijing’s purchases of Russian gasoline are hugely profitable for Moscow even as European and American consumers incur high prices at gas stations.

National average price for a gallon of regular gasoline in US is $4.88 on Tuesdayjust short of the record $5,016 achieved earlier this month.



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