FX.co ★ EU to target Russian gold in fresh sanctions package

Having studied the experience of the United States, European authorities also proposed to include imports of Russian gold in a new tranche of sanctions aimed at crippling the Russian economy. Currently, the bloc's foreign ministers are actively considering banning purchases of the precious metal produced in Russia.

The US was the first to abandon Russian gold imports. Now the European Union is working on new sanctions to target the yellow metal from Russia. Thus, leaders from the Group of Seven rich democracies have vowed to reinforce Moscow's economic and political isolation by adopting a fresh package of restrictive measures. Moreover, some countries intend to seek the broadest possible sanctions list. Although a number of states counted on a total Russian gas embargo, Europe failed to completely wean itself off its purchases as the initiative did not garner widespread support. As for gold, the situation is different. Thus, there is a likelihood that the metal will be in the focus of Western countries. Apparently, they will slap sanctions against certain Russian enterprises.

Notably, Russia is the world's second-biggest gold producer. In 2021, Russian gold exports were worth £12.6 billion (more than $15 billion). After the UK, US, Japan, and Canada unveiled their plans to ban gold imports from the country, London said that such a measure would cause serious damage to the Kremlin and severely constrain its financing flexibility.