ELMAU, Germany — The US announced on Sunday that it will ban new imports of Russian gold as it steps up efforts to deprive Vladimir Putin of the financial resources he needs to maintain his assault on Ukraine.
Biden administration officials made the announcement as the US president prepared to meet with the leaders of France, Germany, Canada, the UK, Italy and Japan. The nations collectively make up an economic alliance known as the Group of Seven.
“The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine,” President Joe Biden said in a tweet. “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.”
Other G-7 nations are expected to follow suit, with the United Kingdom being chief among them. The UK imports more gold from Russia than any other G-7 nation.
Gold is a top export for Russia and a source of significant revenue for the nation.
The latest
- Punishing Putin: G-7 nations will be looking for additional ways to weaken Russia’s economy and discipline Putin.
- It’s a balancing act: Leaders will also discuss how they can bring down oil prices and minimize Russian retaliation against countries abide by sanctions.
- What’s complicating their decisions: Russia has already slowed the flow of gas to European countries that rely on the nation with large oil reserves, sparking fears of an energy crisis on the continent next winter.
- Welcome Wagon: President Biden sat down for talks with German Chancellor Olaf Scholz, a relatively newer leader who replaced Angela Merkel late last year. Scholz was the first G-7 leader to get a one-on-one meeting with Biden during the weeklong trip.
- Break bread: After the meeting Biden made his official entrance at the G-7 before attending a working lunch with assembled leaders. They’re discussing the global economy during their meal, the White House says. Afterward, they’ll participate in a family photo.
What’s about to happen
Biden will announce the launch of a global infrastructure partnership with G-7 nations later in the day, prior to a working dinner with leaders. The White House says their dinner discussion will be focused on foreign policy.
Inflation, supply chain disruptions and Russian sanctions will be on the agenda on Sunday, the first day of the European summit.
G-7 leaders will discuss new ways to crack down on Putin for his invasion into Ukraine, the White House says, and announce the launch of an infrastructure initiative that is meant to help low- and middle-income countries address their development problems better.
What they are saying
- Biden told Scholz that the chancellor has “done an incredible job” and NATO allies have to “stay together” in their fight against Putin’s aggression in Ukraine.
- He said that Putin has been counting on NATO and the G-7 splintering: “But we haven’t. And we’re not going to.”
- The US president also marveled at the beauty of the Bavarian Alps, where the summit is taking place, telling Scholz during their meeting: “I used to ski a lot, too… I haven’t skied in awhile.”
- National Security Coordinator for Strategic Communications John Kirby told reporters on Saturday that Biden was meeting with Scholz first to do a “signals check” before the official start of the summit.
- “They’ll continue to closely coordinate, as they have been, on supporting Ukraine, holding Russia accountable, and, of course, other important priorities between the two of us,” Kirby said.
other takeaways
Speeding up grain exports from Ukraine will be a key topic of discussion for G-7 leaders, with Russia continuing to block the nation’s grain ships from accessing the Black Sea.
Biden has proposed building grain silos along Ukraine’s border with Poland, but the Polish government says constructing the new silos will take months. The White House said Sunday that food security challenges would be a core focus of the G-7.
Want to know more? Here’s what you missed
World leaders will hold sessions on a range of economic challenges while in Germany, including rising prices, global food shortages and the possibility of a global recession.
More:Biden to meet with G-7 leaders in Europe amid global economic crisis, conflict with Russia
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George is Digismak’s reported cum editor with 13 years of experience in Journalism