Russian gold will have its way into the U.S. and G7 markets blocked after the Office of Foreign Assets Control (OFAC) of the Department of the Treasury banned imports of all gold coming from the Eurasian giant. The move has already been implemented by the U.K, Canada, and Japan.
Russian Gold Ban
Prior to this new ban, certain gold-related transactions involving the Russian Federation were already punishable, and OFAC has warned Americans to be vigilant for attempts to circumvent regulations through gold-related transactions.
Simultaneously, the Treasury Financial Crimes Enforcement Network (FinCEN) has issued a joint alert with the Bureau of Industry and Security of the U.S. Department of Commerce to monitor that Russia and Belarus do not evade the export controls contemplated in the sanctions.
“Financial institutions and the private sector continue to play a key role in disrupting Russia’s efforts to acquire critical goods and technology to support its war efforts,” the Treasury Department said.
U.S. President Joe Biden has announced that countries participating in the G7 summit in Germany will impose a ban on imports of Russian gold.
Russian Gold Stance
“Together, the G7 will announce the ban on the import of Russian gold, a major export that generates tens of billions of dollars for Russia,” Biden said on his Twitter account.
As Western sanctions against Russia have vanished gold from European and U.S. markets, the G7 is committed to stopping trade between Russia and the world’s two major trading hubs, London and New York.
As London plays a major role in gold trading globally, an additional statement by the British Government said, “the measure will have a global reach and a huge impact on Russia’s ability to raise funds.”
The move is a formalization of the decrease in gold shipments between Russia and London, with levels achieving near zero. In March, according to a report, the London Bullion Market Association, which sets the standards for this market, removed Russian gold companies from the accreditation list.