As Boris Johnson encourages the G7 to “starve” Vladimir Putin of funds for the Ukraine war, the UK, US, Canada, and Japan have all banned the purchase of Russian gold.
Oligarchs are thought to have used bullion to mitigate the effects of sanctions; in 2021, gold exports to Russia were valued £12.6 billion.
According to Downing Street, the UK’s limitations will significantly affect Mr. Putin’s ability to fund his war campaign because London is a significant center for gold trading.
As he arrived at the G7 summit in Bavaria, Germany, the prime minister announced the change.
“The actions we’ve proposed today will hurt Russian oligarchs directly and strike at the core of Putin’s war machine,” he declared.
“Putin is wasting his little resources on this senseless and heinous conflict.” At the expense of both the Ukrainian and Russian people, he is feeding his ego.
“We must stop providing financial support to the Putin administration.” That is exactly what the UK and our allies are doing.
In the upcoming weeks, legislation to enforce the prohibition will be submitted in Parliament.
Newly mined or refined gold will be subject to the ban.
There are no intentions to impose additional limitations on gold that was lawfully purchased prior to the import ban, and it has no effect on Russian-origin gold that was previously exported from Russia.
In addition to current sanctions, the action will result in limits for Russian exports worth about £13.5 billion from a variety of industries.
Given London’s central position in the world’s gold trade, Chancellor Rishi Sunak declared: “This demonstrates the UK will take serious steps to thwart the Russian war machine.”
As he pushes for a “Plan B” to release grain from Russia’s control, Mr. Johnson has offered an additional £430 million to Ukraine.
The Prime Minister said on the eve of the G7 gathering that the UK will support additional World Bank loans to Ukraine later in the year, increasing its total contribution to £1.2 billion.
Following the Commonwealth conference in Rwanda, Mr. Johnson, who is at the summit, declared: “Ukraine can win and it will win.” However, they require our support to do so. Giving up on Ukraine now is not a good idea.
He also criticized the United Nations’ current grain evacuation plans, saying they would never succeed because Russian President Vladimir Putin would use famine as a negotiating tool to relax sanctions.
Instead, he claims that a “Plan B” is required, which would involve clearing the Black Sea of mines, supplying more armaments, and providing insurance for commercial ships attempting to circumvent the Russian blockade.
Insisting that if Putin gains power, it would be a “catastrophe” for the world, Mr. Johnson cautioned friends against being “exhausted with this issue.”
“Today at the (leaders’) retreat, but tomorrow at the G7,” I’ll say. I believe it’s just reiterating the fundamental idea that Putin’s triumph would be disastrous,’ Mr. Johnson said.
As she warned against a peace agreement that would be a “concession” to Moscow, Foreign Secretary Liz Truss also cautioned against gaining “weary” support for Ukraine.
She told reporters in Kigali that “we’ve just got a month to do this” after conducting talks with Turkey in Ankara.
She remarked, “My worry is that Russia is currently hesitating.”