G7 to ban Russian gold imports, choking key market for Putin

"Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia," President Joe Biden said on Twitter.

The measure was initially flagged by Britain as joint action being taken along with fellow G7 members Canada, Japan and the United States.

However, the rest of the G7, which is holding a summit in Germany, will also join in with a formal unveiling of the sanction on Tuesday, a senior US official said.

"You'll see that on Tuesday. This will be a G7 principal that is articulated," said the official, who spoke to reporters on condition of anonymity.

With its economy already under huge pressure from Western sanctions against banks, energy companies, airlines, high-tech and consumer goods, the choking off of the gold market will have a significant impact, according to G7 officials.

Given London's central role in the international gold trade, "this measure will have global reach, shutting the commodity out of formal international markets," Britain said.

"Gold, after energy, is the second largest export for Russia and a source of significant revenue for (President Vladimir) Putin and Russia," the US official said, adding that the blocking of Moscow's gold sector "will further isolate Russia from the global economy."

According to the White House, Russia accounted for about five percent of all gold exports in 2020 and 90 percent of Russia's output went to G7 countries -- mostly to Britain.

The attempt to clamp down on Russian gold is likely to be the most meaningful economic measure against Moscow announced at the G7's three-day meeting.