G7 countries ban Russian gold when the summit begins

Members of a group of seven wealthy nations ban Russia’s gold imports on Sunday as the G7 summit in the Bavarian Alps begins in the shadow of the consequences of the war and energy shortages in Ukraine to the food crisis. Announced.

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The move by Britain, the United States, Japan and Canada is part of an effort to strengthen sanctions on Moscow and block means of funding the invasion of Ukraine, and Russian President Vladimir Putin is calling for a special military operation. increase.

“The measures announced today will hit Russia’s oligarchs directly and attack Putin’s center of war machinery,” British Prime Minister Boris Johnson said in a statement.

“We need to starve the Putin administration’s money. The UK and our allies are doing just that.”

A senior US administrative representative said the G7 would officially announce a gold import ban on Tuesday.

“This is an important export and an important source of income for Russia in terms of its ability to trade with the global financial system,” US officials said.

According to the British government, Russia’s gold exports were £ 12.6 billion ($ 15.45 billion) last year, and wealthy Russians are buying bullion to reduce the economic impact of Western sanctions.

In addition to the gold import ban, G7 leaders were in “really constructive” talks on possible price limits for Russia’s oil imports, according to German sources.

Message of unity

The three-day summit will be held in a darker background than last year, when leaders from the United Kingdom, Canada, France, Germany, Italy, Japan and the United States first met since the beginning of the COVID-19 pandemic.

Soaring global energy and food prices have hit economic growth in the wake of the conflict in Ukraine, and the United Nations has warned of an “unprecedented global hunger crisis.”

Climate change, increasingly aggressive China, and the rise of authoritarianism are also likely to be on the agenda.

G7 leaders are expected to support Ukraine as much as necessary and put pressure on the Kremlin to show a united front, but it could exacerbate the cost of living crisis that could cause inflation and affect its people. I want to avoid sanctions.

“The main message from the G7 is the unification and coordination of actions,” EU officials said.

G7 leaders are also expected to work on rising energy prices and discuss options for replacing Russia’s oil and gas imports.

The summit also provides an opportunity for German Prime Minister Olaf Scholz to take more active leadership in the Ukrainian crisis.

After Russia’s invasion in February, Schortz vowed to revolutionize Germany’s foreign and defense policies, strengthening its army and promising to send weapons to Ukraine. But critics have accused him of dragging and sending mixed messages ever since.

Global Partner

This year, Schortz invited Senegal, Argentina, Indonesia, India and South Africa as partners for the summit.

“The summit not only sends a message that NATO and the G7 are more united than ever, but that world democracy is against Putin’s imperialism, as is the fight against hunger and poverty. I have to send a message, “Shortz said. He told the German Parliament this week.

Many countries in the Global North and Global South are concerned about collateral damage from Western sanctions.

EU officials said G7 countries would impress partner countries that the soaring food prices that hit them were the result of Russia’s actions and that there were no sanctions on food. It was also a mistake to think of the Ukrainian War as a regional issue.

“That’s more. I’m questioning the post-WWII order,” officials said. G7 countries ban Russian gold when the summit begins

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