Featured image of post US, G7 freeze Russian gold amid Ukraine war

US, G7 freeze Russian gold amid Ukraine war

The restrictions aim to limit the country’s ability to use its international reserves and circumvent sanctions.

· 1130 points

The restrictions aim to limit the country’s ability to use its international reserves and circumvent sanctions.

Highlights

  • Restrictions aimed at limiting the country’s ability to use its international reserves.
  • Restrictions are designed to limit Russia’s ability to circumvent punishing Western sanctions.
  • The government of President Vladimir Putin has spent years building its reserves and currently has the fifth largest stockpile of gold in the world.
  • Previously, sanctions against Russian elites and Putin had not affected Russia’s gold stockpile.
  • It is also an attempt to prevent innovative financial transactions through other countries that continue to do business with Russia.
  • The country has between $100bn to $140bn in gold reserves, which is roughly 20 percent of the holdings in the Russian central bank, according to US officials.