President Biden told allies at a G7 summit on Sunday that “we must stand together” against Russia — as the group moved to ban imports of Russian gold to continue pushing Moscow out of the global economy.
“We have to stay together because Putin expected from the start that NATO and the G7 would somehow fragment, but we didn’t and won’t,” Biden told German Chancellor and current G7 President Olaf Scholz at a pre-summit meeting.
The formal announcement of the new sanctions clause is expected to be made on Tuesday during the summit in the Bavarian Alps.
The US and its Western allies have imposed a series of economic sanctions on Russia, Kremlin officials and many of its oligarchs aimed at cutting off revenue streams that allow President Vladimir Putin to fund the war in Ukraine that he launched on March 24. February started.
“In this case, gold is the second largest export for Russia after energy and a significant source of revenue for Putin and Russia,” a senior government official said Sunday.
“The United States Treasury Department will make a decision on Tuesday to ban the import of new gold into the United States, which will further isolate Russia from the global economy by preventing its participation in the gold market,” the official added
British Prime Minister Boris Johnson welcomed the move in a statement, saying the ban will “hit Russian oligarchs head-on and hit the heart of Putin’s war machine”.
“Putin is wasting his dwindling resources on this senseless and barbaric war. He is funding his ego at the expense of both the Ukrainian and Russian people,” Johnson continued. “We must starve the Putin regime of its funding.”
Meanwhile, Russia launched rocket attacks on the Ukrainian capital Kyiv on Sunday at the start of the G7 summit, hitting at least two residential buildings.
It was the first time in three weeks that the Russian military had attacked Kyiv
Gold has replaced energy as Russia’s top export in recent years, reaching $19 billion in 2020, or about 5% of global gold exports, the White House said.
About 90% of these exports went to the G7 countries.
Of that amount, around US$17 billion was exported to the UK, while the US imported less than US$200 million of gold from Russia in 2019 and less than US$1 million in 2020 and 2021.
Russian oligarchs are increasingly buying gold to mitigate the financial impact of Western sanctions.
The four-month war in Ukraine has severely restricted the global energy market, sending prices soaring and causing global food shortages, prompting the United Nations to warn of a “global hunger crisis”.
Leaders of the G7 countries – the United States, Britain, Canada, France, Germany, Italy and Japan, as well as the European Union – are expected to hold formal and informal talks over the next few days on how Russia can curb gas consumption and oil profits in order to to finance the war.
They are also expected to discuss how the war is affecting the global economy.
With postal wires
https://nypost.com/2022/06/26/biden-tells-g7-allies-to-stay-together-against-moscow/ Biden urges G7 allies to ‘stick together’ against Moscow.