G7 announces embargo on Russian gold at start of meeting in Germany

“We need to deprive the Putin regime of its funding. The UK and our allies are doing just that.”

A senior US administration official said the G7 would make an official announcement on the gold import ban on Tuesday.

“This is a key export, a crucial source of income for Russia in terms of its ability to transact with the global financial system,” the US official said.

Russian gold exports were worth 12.6 billion pounds ($15.45 billion) last year and richer Russians have been buying bullion to reduce the financial impact of Western sanctions, the British government said.

In addition to the gold import ban, G7 leaders were also having “really constructive” talks about a possible price cap on Russian oil imports, a German government source said.

unit message

The three-day summit takes place against an even darker backdrop than last year, when British, Canadian, French, German, Italian, Japanese and American leaders met for the first time since the start of the COVID pandemic. -19.

Rising global energy and food prices are weighing on economic growth in the wake of the conflict in Ukraine, with the United Nations warning of an “unprecedented global hunger crisis”.

Climate change, an increasingly assertive China and the rise of authoritarianism will also be on the agenda.

G7 leaders are expected to show a united front in supporting Ukraine for as long as it takes and increasing pressure on the Kremlin, though they will want to avoid sanctions that could stoke inflation and exacerbate the cost-of-living crisis affecting their own populations.

“The main message of the G7 will be unity and coordination of actions,” an EU official said.

G7 leaders are also expected to discuss options to tackle rising energy prices and replace Russian oil and gas imports.

The summit also provides an opportunity for German Chancellor Olaf Scholz to demonstrate more assertive leadership on the Ukraine crisis.

The president of the United States, Joe Biden, on Sunday thanked the actions of the German head of state to take a unified and robust position against the Russian invasion.

global partners

This year, Scholz has invited Senegal, Argentina, Indonesia, India and South Africa as partner countries at the summit.

“The summit must send the message not only that NATO and the G7 are more united than ever, but also that the world’s democracies are united against Putin’s imperialism, just as they are in the fight against hunger and poverty. Scholz told the German Parliament this week.

Many countries in the southern hemisphere are concerned about collateral damage from Western sanctions.

An EU official said the G7 countries would convince partner countries that the food price spikes that hit them were the result of Russia’s actions and that there were no targeted sanctions on grains. It was also a mistake to think of the Ukraine war as a local affair.

“It’s more than this. It’s challenging the order, the post-World War II order,” the official said.