Russian Gold Ban: New EU Sanctions

17:24 01 July Kyiv, Ukraine

The European Union is developing a new package of sanctions against the aggression of the Russian Federation, it will include a ban on the import of Russian gold.

It is reported by Bloomberg, citing a source close to the process.

Earlier, the G7 countries announced plans to ban gold imports from Russia. Britain said at the time that the measure would have a "big impact" on Russia's ability to finance its military and on the oligarchs' attempts to avoid the effects of financial sanctions by buying gold bars.

However, industry analysts are less enthusiastic and describe the ban as more of a symbolic one, as the already imposed sanctions have effectively closed the EU and US markets to Russia. In particular, flows to traditional shopping malls in London and Zurich have mostly come to a halt due to the "self-sanctioning" of the industry.

Preparations for a new package of sanctions continue. The new package will also cover adjustments to previously approved measures, which could include changes to the rules for the transit of sanctioned goods into the Russian Kaliningrad enclave, the sources told the agency.

G7 leaders meeting in Germany this week also agreed to discuss options for capping the price of Russian oil, in particular by banning services such as insurance needed to transport crude oil and petroleum products. At the same time, according to the agency, this mechanism will not work in the near future.

A number of EU countries insist on strengthening sanctions, for example, on gas, but so far the EU is not ready for decisive sanctions steps. Attention is likely to be focused on strengthening and expanding existing sanctions, such as restrictions on the export of technology, as well as sanctions against Russian oligarchs and organizations.