G7 Leaders Announce Russia Gold Ban Amid Ukraine War, Stagflation Risk

Date: 26 June 2022 - 21:23

News ID: ۱۰۴۱۲۲

BERLIN (Reuters/Sputnik) –
German Chancellor Olaf Scholz welcomes leaders of the Group of Seven countries on Sunday to a three-day summit in the Bavarian Alps overshadowed by the war in Ukraine and its far-reaching consequences, from energy shortages to a food crisis.
The summit takes place against a darker backdrop than last year when the British, Canadian, French, German, Italian, Japanese and U.S. leaders met for the first time since before the Covid-19 pandemic and vowed to build back better.
Soaring global energy and food prices are hitting economic growth in the conflict in Ukraine. The United Nations warned on Friday of an “unprecedented global hunger crisis”. Climate change and the rise of authoritarianism are also set to be on the agenda.
“The main message from the G7 will be unity and coordination of action... That’s the main message, that even through difficult times... we stick to our alliance,” an EU official said.
The summit takes place at the castle resort of Schloss Elmau at the foot of Germany’s highest mountain, the Zugspitze - the same venue as when the country last hosted the G7 annual meet-up in 2015.
Members of the G7 confirmed a ban on imports of Russian gold at the start of their three day summit in the Bavarian Alps. The move by Britain, the United States, Japan and Canada is part of efforts to tighten the sanctions on Moscow.
“The measures we announced today will deal a direct blow to Russian oligarchs and strike at the very 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,” Johnson added.
The British government said Russian gold exports totaled 12.6 billion pounds ($15.45 billion) last year, and wealthy Russians are buying bullion to reduce the financial impact of Western sanctions.
A senior U.S. administration representative said the G7 would make an official announcement on the gold import ban on Tuesday.
“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.
This comes as the western powers are grappling with several crises, including surging inflation and energy prices. The U.S., along with its European allies, has been seeking to shift the blame on Russia. They have imposed a raft of financial and energy sanctions against Kremlin.
Following the conclusion of the G7 summit, leaders of the 30-member NATO will convene for their annual summit, which is scheduled to be held Wednesday through Thursday in the Spanish capital of Madrid.
Meanwhile, nine people were arrested during the demonstration held in the German city of Munich on Saturday, ahead of the G7 summit, Sputnik quoted the Suddeutsche Zeitung newspaper report citing police.
Two law enforcement officers sustained light injuries and several demonstrators were also wounded during the protest, the newspaper said on Saturday, Bernama reported.
Earlier, German media reported that the Munich police said that about 20,000 people had registered their participation before the Saturday rally but only 4,000 showed up, while the organizers said there were 6,000 people at the demonstration.
The protest was organized by climate groups demanding that world leaders put more effort into abandoning fossil fuels, preserving biodiversity, promoting social justice and fighting hunger.