Categories: World

G-7 nations freeze Russia’s gold deals in bid to block $120 billion war chest

<p>
Group of 7 leaders have announced they are restricting the Russian Central Bank's use of gold in transactions in order to further blunt Russia’s ability to prop up its economy and fund its war against Ukraine.  </p>
<p>
Russia holds roughly $130 billion in gold reserves, and the Bank of Russia announced on Feb 28 that it would resume the purchase of gold on the domestic precious metals market.</p>
<p>
The move will prevent Moscow from using gold to buy other foreign currencies which are not under sanctions and which would enable Russia to continue its global trade. Gold can also be directly used to purchase goods and services from willing sellers. Gold transactions have also been used to check the free-fall of the rouble.</p>
<p>
The US has asked all its gold buyers and distributors to stop dealing in Russian gold as part of the move to implement the ban.</p>
<p>
The move was unveiled on Thursday as G7 leaders—US, UK, France, Germany, Canada, Italy and Japan met at the NATO headquarters in Brussels to beef up the economic punishment inflicted on Russia.</p>
<p>
The G-7 and the European Union also announced a new effort to share information and coordinate responses to prevent Russia from evading the impact of sanctions that western nations have levied since the Feb 24 invasion.</p>
<p>
The decision to freeze Russian foreign exchange reserves last month was seen by officials as the most powerful sanction the allies have unveiled in response to the conflict in Ukraine.</p>
<p>
Russia’s finance minister said this month that the country had lost access to around half its reserves as a result.</p>
<p>
The rouble has nose-dived as a result and US President Joe Biden had remarked that it is “worth only a few pence now.”</p>
<p>
<strong>Also read:  <a href="https://www.indianarrative.com/opinion-news/west-must-stop-pressurizing-india-against-russia-on-ukraine-159558.html">West must stop pressurizing India against Russia on Ukraine</a></strong></p>

IN Bureau

Recent Posts

IMD issues red alert for heavy to extremely heavy rainfall in 5 districts of Kerala

The India Meteorological Department (IMD) on Saturday issued a red alert for heavy to extremely…

50 minutes ago

PM Modi to visit Cyprus, attend G7 summit in Canada, meet leaders in Croatia from June 15-19

Prime Minister Narendra Modi will pay an official visit to Cyprus, Canada and Croatia from…

58 minutes ago

Israeli airstrike hits army base in Iran’s Zanjan: Reports

Reports indicate that Israeli fighter jets have targeted an army base in Zanjan, a city…

1 hour ago

Air Chief Marshal AP Singh attends Combined Graduation Parade at Air Force Academy in Hyderabad

Chief of the Air Staff, Air Chief Marshal AP Singh, on Saturday, attended the Combined…

1 hour ago

IAEA confirms internal contamination after Israel airstrikes partially destroy Natanz nuclear facility

The International Atomic Energy Agency (IAEA) Director General Rafael Grossi, in his statement to the…

2 hours ago

ICG, Navy achieve milestone in MV Wan Hai 503 firefighting ops, pull burning vessel away from Indian Coast

In a breakthrough, the Indian Coast Guard (ICG) successfully enabled the towing of the fire-stricken…

2 hours ago