G-7 nations to announce import ban on Russian gold

The leaders of the G-7 nations will announce a ban on Russian gold imports for Moscow's unprovoked invasion of Ukraine, U.S. President Joe Biden confirmed on Sunday morning.

As the leaders met in Munich, Germany, for the newest G-7 summit, Biden took to Twitter to verify earlier stories of an imminent ban.

"The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine," he mentioned early Sunday.

"Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia."

The transfer would add to a collection of punitive penalties imposed by the West on Russia since its onslaught of Ukraine started on Feb. 24.

The sanctions have aimed to crush the Russian economic system and have included bans or curbs on oil and fuel imports and buying and selling with Russian banks and people. Indeed, U.S., Canada and their European allies agreed in February to take away key Russian banks from the interbank messaging system, SWIFT, successfully severing the nation from a lot of the worldwide monetary system.

Tuesday announcement

The U.Okay. authorities on Sunday additionally confirmed the transfer to ban Russian gold imports, saying it could apply to newly mined gold and refined gold — excluding gold which will have come from Russia however had already been exported.

Putin's ambitions transcend occupying Ukrainian territory: Ex-German ambassadorCapital Connection

Russia is the world's second-largest producer of gold, in accordance to the newest knowledge from the World Gold Council, with round a ten% slice of the globe's output. Reuters stories that its holdings of gold have tripled because it illegally annexed Crimea in 2104 and the commodity is a vital asset for Russia's central financial institution — which is already working underneath severely restricted circumstances.

A senior U.S. administration official mentioned Sunday, in accordance to Reuters, that the ban could be introduced on Tuesday, including that the "the president and other G-7 leaders will continue to work to hold Putin accountable."

Ruble energy

Despite the unprecedented degree of sanctions imposed on the Kremlin, the Russian ruble truly hit its strongest degree in seven years final week following a February collapse.

Russia's ruble hit 52.3 to the greenback on Wednesday, its strongest degree since May 2015, and its surge is being cited by the Kremlin as "proof" that Western sanctions aren't working.

In truth, the ruble has truly gotten so sturdy that Russia's central financial institution is actively taking measures to strive to weaken it, fearing that this can make the nation's exports much less aggressive.

—CNBC's Natasha Turak contributed to this text.

based mostly on web site supplies www.cnbc.com

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