U.S. President Joe Biden is greeted by Bavaria's State Premier Markus Soeder at Franz-Josef-Strauss airport in Munich ahead of the G7 summit, which will take place in the Bavarian alpine

Summary

  • Gold ban targets ‘Putin’s war machine’, says British PM
  • Oil import price cap also being discussed, says German source
  • G7 also aims to tackle soaring energy prices

SCHLOSS ELMAU, Germany, June 26 (Reuters) – Members of the Group of Seven wealthy nations on Sunday announced a ban on imports of Russian gold as the G7 summit in the Bavarian Alps begins under the shadow of the war in Ukraine and consequences ranging from energy shortages to a food crisis.

U.S. President Joe Biden walks with Bavaria’s State Premier Markus Soeder past people in traditional Bavarian clothes as Biden arrives for a G7 summit aboard Air Force One at Munich.

The move by Britain, the United States, Japan and Canada is part of efforts to tighten the sanctions squeeze on Moscow and cut off its means of financing the invasion of Ukraine more than four months into a conflict Russian President Vladimir Putin calls a special military operation.

“The measures we have announced today will directly hit Russian oligarchs and strike at the heart of Putin’s war machine,” British Prime Minister Boris Johnson said in a statement.

“We need to starve the Putin regime of its funding. The UK and our allies are doing just that.”

A senior U.S. administration representative said the G7 would make an official announcement on the gold import ban on Tuesday. read more

“This is a key export, a key source of revenue for Russia in terms of their ability to transact with the global financial system,” the U.S. official said.

Russian gold exports were worth 12.6 billion pounds ($15.45 billion) last year and wealthy Russians have been buying bullion to reduce the financial impact of Western sanctions, the British government said.

U.S. President Joe Biden, next to Bavaria’s State Premier Markus Soeder, signs the Golden Book of the Bavarian State government as he arrives for a G7 summit at Munich

As well as the gold import ban, G7 leaders were also having “really constructive” talks on a possible price cap on Russian oil imports, a German government source said. read more

MESSAGE OF UNITY

The three-day summit takes place against an even darker backdrop than last year, when British, Canadian, French, German, Italian, Japanese and U.S. leaders met for the first time since the start of the COVID-19 pandemic.

Soaring global energy and food prices are hitting economic growth in the wake of the conflict in Ukraine, with the United Nations warning of an “unprecedented global hunger crisis”. read more

LEAVE A REPLY

Please enter your comment!
Please enter your name here