Today, as the UK, US, Canada, and Japan banned the purchase of Russian gold to start off the G7 summit, Boris Johnson issued a warning that “fatigue” over the Ukraine crisis might erode Western solidarity.
The prime minister claimed there was blatant “anxiety” about the consequences of attempting to stop Vladimir Putin’s aggressiveness.
Speaking this morning at the conference in Germany, Mr. Johnson expressed his hope that everyone understood that “the price of backing down, the price of enabling Putin to succeed…will be much, far greater.”
Asked if he was worried about support fracturing, the premier said: ‘I think the pressure is there and the anxiety is there, we’ve got to be honest about that.
‘But the most incredible thing about the way the West has responded to the invasion of Ukraine by Putin has been the unity – Nato has been solid, the G7 has been solid and we continue to be solid.
‘But in order to protect that unity, in order to make it work, we’ve got to have really, really honest discussions about the implications of what’s going on, the pressures that individual friends and partners are feeling, that populations are feeling – whether it’s on the costs of their energy or food or whatever.’
Gold exports were worth £12.6billion to Russia in 2021, oligarchs are believed to have been using bullion to avoid the impact of sanctions.
Downing Street says that because London is a major gold-trading hub, the UK’s restrictions will have a huge impact on Mr Putin’s ability to finance his war effort.
As Boris Johnson (left) encourages the G7 to “starve” Vladimir Putin (right) of funds for the Ukraine war, the UK, US, Canada, and Japan have banned imports of Russian gold.
As he arrived at the G7 meeting in Bavaria, the PM announced the decision to restrict gold imports.
“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 processed gold will be subject to the ban.
There are no intentions to impose additional limitations on gold that was lawfully bought prior to the import ban, and it has no effect on Russian-origin gold that was already exported from Russia.
The decision, which adds to the current sanctions, would result in limitations for Russian exports worth about £13.5 billion from a variety of businesses.
Given London’s central position in the world’s gold trade, Chancellor Rishi Sunak declared: “This demonstrates the UK will take serious actions to thwart the Russian military machine.”
A senior White House official said the world was ‘imposing swift and significant economic costs’.
‘It will deny Putin revenue he needs to finance his war. In this case, gold after energy is the second largest export for Russia and a source of significant revenue for Putin and Russia.
‘The US Treasury will issue a determination to prohibit the import of new gold into the United States on Tuesday, which will further isolate Russia from the global economy by preventing its participation in the gold market.’
Asked if financial sanctions are working on Russia’s economy, the official said: ‘We’re already seeing the extent to which sanctions are degrading the productive capacity of the Russian economy, particularly in sectors like technology, like defense, like other key important industries…
‘Those impacts only accumulate over time such that Russia’s ability to produce Russia’s ability to wage war are going to decline over time as a result of the collective steps that the G7 has taken.’
Mr Johnson has pledged a further £430million to Ukraine as he pushes for a ‘Plan B’ to free grain from Russia’s clutches.
Speaking on the eve of the G7 meeting, the Prime Minister confirmed the UK would back more World Bank loans to Ukraine later on in the year, bringing its total support up to £1.2 billion.
Mr Johnson, who is attending the summit on the back of a Commonwealth meeting in Rwanda, said: ‘Ukraine can win and it will win. But they need our backing to do so. Now is not the time to give up on Ukraine.’
It comes as he criticised current United Nations plans to get grain out of the war-torn country, saying they are doomed to fail because Russian President Vladimir Putin will use famine as a bargaining chip to ease sanctions.
Instead, he says a ‘Plan B’, which would involved de-mining the Black Sea, providing further weapons and offering insurance for commercial vessels trying to run the Russian blockade, is needed.
Mr Johnson warned allies against becoming ‘exhausted with this thing’, arguing it would be a ‘disaster’ for the world if Putin wins ground.
‘I’m going to make it today in the (leaders) retreat, but tomorrow in the G7. I think it’s just repeating that basic point that a victory for Putin is a disaster,’ Mr Johnson said.
Foreign Secretary Liz Truss was also warning against getting ‘tired’ support for Ukraine, as she warned against a peace deal that would be a ‘concession’ to Moscow.
After holding talks with Turkey in Ankara, she told reporters in Kigali that ‘we’ve only got a month to do this’.
‘My concern is that Russia is currently prevaricating,’ she said.