The USA is preparing sanctions against all Russian gold and any transactions with it
The US authorities are preparing to limit Russia’s ability to conduct cross-border operations with gold as much as possible. The soon-to-be-adopted bill provides for penalties even for foreigners who take part in gold transactions where Russia or its representatives act as counterparties. As a result, such transactions will not be able to be carried out, for example, by banks, dealers or jewelers that are connected to the US. The Moscow Times writes about it.
According to the text of the sanctions section, 90 days after the law is passed, they must be imposed against foreigners who have participated in “significant transactions involving the sale, supply or transfer (including transportation) of gold directly or indirectly to or from the Russian Federation.” The same restrictions apply to operations with the Russian government, including reserves of the Central Bank located outside of Russia.
“Large gold reserves are one of the few assets that Putin can use to finance a brutal and bloody war,” Senator Angus King, who along with several colleagues proposed restrictions on gold transactions back in March, told CNN. – By introducing sanctions against these reserves, we can further isolate Russia from the world economy and make it more difficult for Putin to conduct a military campaign, which is becoming more and more expensive.”
Gold exports from Russia last year amounted to $15.5 billion, the British government reported in June (London is the main world center for gold trade). This is the second largest item of Russian export after energy resources.
Earlier, in June, the G7 countries imposed an embargo on the import of gold from Russia. At the same time, on March 7, the London Association of Gold Market Participants suspended cooperation with all six Russian companies involved in metal mining and processing.
But Russia could continue to export gold to other countries. However, the new law provides for sanctions against foreigners who participate in such transactions if they have any property or interests in the United States. Those subject to sanctions will also be denied US visas.
The introduction of full-scale sanctions may, if not stop the export of Russian gold, then, as in the case of oil, force it to be sold at a deep discount.
