UK sanctions Russian gold exports
The ban, which will come into force shortly, will apply to newly mined or refined gold, and does not impact Russian-origin gold previously exported from Russia
New exports of Russian gold will no longer be allowed to enter the UK, Canada, US and Japan due to new measures announced at the G7 Summit yesterday (26 June), in a bid to ramp up the pressure on Putin amid his attack on Ukraine.
Gold is reportedly Russia’s biggest non-energy export, worth £12.6bn to the Russian economy in 2021. Its value to the Russian elite has also increased in recent months with oligarchs rushing to buy gold bullion in an attempt to avoid the financial impact of western sanctions.
The gold import ban, which will come into force shortly, will apply to newly mined or refined gold, and does not impact Russian-origin gold previously exported from Russia. The UK government said there are no plans to extend restrictions to Russian gold purchased legitimately before the import ban was put in place.
UK import restrictions now apply to over £13.5bn worth of Russian exports. The UK has also sanctioned more than 1,000 individuals and more than 100 entities since Putin’s invasion of Ukraine.
The sanctions will be “the first of their kind” to be implemented against Russia anywhere in the world, impact on Putin’s ability to raise funds. The measures announced today build on the action taken by the London Bullion Market on 7 March to suspend six Russian refineries.
Boris Johnson, UK prime minister, said: “The measures we have announced today will directly hit Russian oligarchs and strike at the heart of Putin’s war machine. Putin is squandering his dwindling resources on this pointless and barbaric war.
“We need to starve the Putin regime of its funding. The UK and our allies are doing just that.”
Rishi Sunak, chancellor, added: “With this import ban on new Russian-origin gold, over £13.5bn of our imports from Russia will be covered by restrictions. Given London’s role at the heart of the global gold trade, this shows the UK will take tough steps to stop the Russian war machine.
“I am pleased that following discussions with others in the G7 Finance Track, the US, Canada and Japan will be joining us in imposing this measure, shutting down avenues for Russian gold sales and maximising the impact that we can have on Putin and his cronies.”
