Russia’s gold stockpile targeted in new G7 sanctions

New sanctions target Russia’s use of gold in transactions (Royal Mint/PA)

G7 leaders have announced they are restricting the Russian Central Bank’s use of gold in transactions.

Previously, sanctions against Russian elites, the country’s Central Bank and President Vladimir Putin did not affect Russia’s gold stockpile, which Mr Putin has been accumulating for several years.

Russia holds roughly 130 billion dollars in gold reserves, and the Bank of Russia announced on February 28 that it would resume the purchase of gold on the domestic precious metals market.

Russian President Vladimir Putin has built up Russia’s gold stockpiles (Mikhail Klimentyev, Sputnik, Kremlin Pool/AP)

White House officials said on 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 defence 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 G7 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 February 24 invasion.