The G7 group of developed economies and the European Union approved to shut off transactions comprising the Russian central bank’s gold funds to hamper any Moscow bid to circumvent Western sanctions, the White House announced on Thursday.
The allies will function together “to blunt Russia’s potential to fund… (President Vladimir) Putin’s war, comprising by bringing clear that any transaction affecting gold… is covered by previous sanctions,” the statement announced.
Group of Seven leaders have confirmed they are prohibiting the Russian Central Bank’s use of gold in transactions, while the US declared a new round of sanctions targeting more than 400 elites and members of the Russian State Duma.
Earlier, sanctions against Russian elites, the country’s Central Bank and President Vladimir Putin did not affect Russia’s gold stockpile, which Putin has been collecting for several years. Russia holds approximately $130 billion in gold reserves, and the Bank of Russia declared Feb 28 that it would continue the purchase of gold on the domestic important metals market.
White House officials announced that this move will further stop Russia’s potential to use its international stocks to prop up Russia’s economy and fund its battle against Ukraine.
However, the Biden administration declared more sanctions targeting 48 state-owned defence firms, 328 members of the Duma, Russia’s lower parliament, and dozens of Russian elites. The Duma as an element was also called in the new sanctions.