G7 restricts Russian bank's use of gold; US sanctions 400 more elites and Duma members

AP , Thursday 24 Mar 2022

Group of Seven leaders have announced they are restricting the Russian Central Bank's use of gold in transactions, while the U.S. announced a new round of sanctions targeting more than 400 elites and members of the Russian State Duma.

(L/R): NATO Secretary General Jens Stoltenberg, European Commission President Ursula von der Leyen,
(L/R): NATO Secretary General Jens Stoltenberg, European Commission President Ursula von der Leyen, Japan s Prime Minister Fumio Kishida, Canada s Prime Minister Justin Trudeau, US President Joe Biden, Germany s Chancellor Olaf Scholz, British Prime Minister Boris Johnson and France s President Emmanuel Macron pose for a G7 leaders family photograph during a NATO summit at the alliance s headquarters in Brussels on March 24, 2022. AFP

Previously, sanctions against Russian elites, the country's Central Bank and President Vladimir Putin did not impact Russia's gold stockpile, which Putin has been accumulating for several years. Russia holds roughly $130 billion in gold reserves, and the Bank of Russia announced Feb. 28 that it would resume the purchase of gold on the domestic precious metals market.

White House officials said Thursday the move will further blunt Russia's ability to use its international reserves to prop up Russia's economy and fund its war against Ukraine.

Meanwhile, the Biden administration announced more sanctions targeting 48 state-owned defense companies, 328 members of the Duma, Russia's lower parliament, and dozens of Russian elites. The Duma as an entity was also named in the new sanctions.

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.

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