The European Commission imposes sanctions on Russian gold.
The European Commission proposed on Friday that Russian gold imports be included in a new package of sanctions aimed at further weakening the Russian economy.
The EU executive would not consider the proposed new restrictions a seventh round of sanctions, which many member states have already come out against, but rather a “maintenance and extension” package.
However, it would impose a new embargo, this time on Russian gold. The precious metal is Russia’s biggest export after energy and was worth more than 18.5 billion euros in 2020.
According to the Observatory of Economic Complexity, which collects data on international trade, the vast majority of Russian gold went to the UK that year, with the remaining €2bn split between Switzerland, Kazakhstan, Turkey and India.
For the EU, the reason for the gold embargo is that it wants to align itself with its main international partners, as promised at last month’s G7 meeting in Germany. The United States, Great Britain and Japan have already imposed such a sanction.
It should also cause significant damage to Russia’s elite and economy as the precious metal has become a safe haven in recent months for oligarchs who are buying gold bullion in a bid to cushion the impact of Western sanctions on Russia.
