OVERVIEW
MANAGEMENT
PERFORMANCE
POSSIBILITIES
CAPITALS
ACTIVITIES
ACTORS
BURGESS
|
SANCTIONS
SANCTIONING GOLD All that glitters won’t be sold: G7 bans Russian gold ... Biden says G7 will ban Russian gold imports ... Ban is latest effort to undercut Russia’s extraction-based economy in response to war in Ukraine. 
Russian Prime Minister Vladimir Putin ... The US announced the ban on Russia's gold as G7 leaders were due to meet | Alexsey Druginyn/AFP via Getty Images Original article: https://thehill.com/homenews/administration/biden-g-7-leaders-huddle-on-energy-inflation-ukraine-war/ and Original article: https://www.politico.eu/article/all-that-glitters-wont-be-sold-g7-bans-russian-gold/ Peter Burgess COMMENTARY Gold has an interesting position in economic analysis. Mostly gold has more historic interest than being an important element in the general functioing of the modern global economic system. Having said that ... gold is a real metal that has some unique properties and is used in many industrial applications and is traded in real markets. In this context, Russian gold has real commercial value and making it unacceptable in the main global markets via sanctions can mean a very real loss of revenue for Putin's Russian Federation. Peter Burgess | ||
|
All that glitters won’t be sold: G7 bans Russian gold
Ban is latest effort to undercut Russia’s extraction-based economy in response to war in Ukraine. BY DAVID M. HERSZENHORN June 26, 2022 10:03 am ELMAU, Germany — The G7 economic powers will ban imports of Russian gold in a further tightening of the stranglehold Western nations have sought to impose in response to Russian President Vladimir Putin's brutal war in Ukraine. U.S. President Joe Biden announced the plan as the G7 leaders were due to arrive at a Schloss Elmau, the luxury resort in the Bavarian Alps, for a summit where discussions about the war and the global economic fallout are expected to dominate. 'Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia,' Biden tweeted. Western allies have imposed six rounds of punishing sanctions in response to the war, many of them designed to decimate Russia's largely extraction-based economy. These have included bans on Russian oil, and extensive export controls aimed at denying Russia crucially-needed technology. Western allies have also been sending Ukraine supplies of weapons and ammunitions even as they have refused to directly join the fighting. The sanctions, while historic in scale and scope, have yet to deter Putin or lead him to pull back his armies, which are now occupying large swaths of southern and eastern Ukraine, including a so-called land bridge to Crimea, the Ukrainian peninsula that Russia invaded and annexed in 2014. Russian forces failed in an attempt to capture Kyiv, the capital, and topple the Ukrainian government, but they now seem intent on conquering and occupying the entirety of Ukraine's eastern Donbas region. In a statement, the U.K. government confirmed the move, saying: 'U.K., U.S., Japan and Canada will lead G7 to ban import of Russian gold, the country’s biggest non-energy export.' Biden says G7 will ban Russian gold imports BY MORGAN CHALFANT 06/26/22 12:12 AM ET ... Updated at 8:50 a.m. President Biden said Sunday that the Group of Seven (G7) nations will ban Russian gold imports to further impose financial costs on Moscow for its invasion of Ukraine. “The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine,” Biden tweeted on Sunday. “Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.” Biden’s announcement came on the first day of a G7 meeting in Germany; a formal announcement is expected later on during the summit. While it does not bring in as much money as energy, gold is a major source of revenue for the Russian economy. Restricting exports to G7 economies will cause more financial strain to Russia as it wages the war in Ukraine. The G7 includes the United States, France, Canada, Germany, Japan, the United Kingdom and Italy. The U.S. and its allies have been searching for more ways to punish Russia for the bloody war that recently entered its fifth month. Biden has announced waves of penalties coordinated with allies that range from sanctions on Russian officials and oligarchs to export controls to sanctions on major Russian banks. Still, Europeans are limited in what they can do because of their dependence on Russian energy imports. European countries have vowed to phase out Russian oil but have not taken steps like the U.S. to do so immediately. Biden administration officials teased new announcements to squeeze Russia ahead of Biden’s trip to Europe and it’s possible there will be more announcements beyond the plan to ban Russian gold imports. Biden embarked on the trip to Europe for the G7 meeting and, later, a North Atlantic Treaty Organization (NATO) summit with the goal of demonstrating unity with allies on keeping up pressure on Russia even as the war roils the global economy. Biden spent Sunday morning meeting with German Chancellor Olaf Scholz and later participated in a working lunch with other leaders. A White House readout of Biden’s meeting with Scholz indicated Ukraine was a main topic of conversation. “The leaders underlined their commitment to Ukraine’s sovereignty and territorial integrity, as well as their continued provision of military, economic, humanitarian, and diplomatic support to help Ukraine defend its democracy against Russian aggression,” the White House readout said. “The leaders also discussed efforts to alleviate the impacts of Russia’s war in Ukraine on global food and energy security.” Biden also thanked Scholz for committing to boosting Germany’s defense spending above NATO’s 2 percent of gross domestic product target. A White House official characterized the meeting as “very warm and friendly” and said there was “very broad alignment on all of the issues that they discussed and all the common challenges that our countries are working on together.”
| The text being discussed is available at | https://thehill.com/homenews/administration/biden-g-7-leaders-huddle-on-energy-inflation-ukraine-war/ and https://www.politico.eu/article/all-that-glitters-wont-be-sold-g7-bans-russian-gold/ |