EU seventh package
The European Union has approved a seventh package of sanctions against Russia. The package includes a partial ban on gold imports and was announced by the head of the European Commission on social media. The new measures add 55 Russian natural and legal persons to the sanctions list and tighten rules on dual‑use goods. A notable provision is the temporary relaxation concerning aviation industry imports, which goes against ICAO safety standards and will be explained in the official documentation. The authorizations specify that previously imposed sanctions will be extended to remain in force through the end of January 2023.
According to the Commission, the bloc has strengthened and expanded its sanctions regime aimed at the Kremlin. The restrictions are scheduled to take effect after the package is published in the Official Journal of the European Union, where all specifics will be laid out. Early reporting indicated that the package would embargo the purchase of Russian gold while not applying to jewelled forms such as jewelry. The plan is understood to cover powdered gold, raw gold, gold bars and ingots, coins, and scrap materials, but explicitly not gold jewelry like chains and rings. This distinction is viewed by observers as a potential gap that could still enable flows of funds to the Kremlin’s treasury.
Earlier steps included agreements to ban the import of Russian coal, a measure that initially aimed to start in August. Data from that period showed an uptick in European coal imports to 4.7 million tons in May 2022, a significant rise from the previous month. The European Union’s top diplomat said the central thrust of the sanctions is to halt Russia’s oil purchases through the end of the year, underscoring the broader effort to deprive Moscow of revenue. While Russia can still sell oil to other markets, the scale of demand will face pressure due to substantial discounts needed to attract buyers beyond traditional partners.
Britain rejects Russian gold
On a recent date, the United Kingdom implemented a ban on imports of Russian gold. The government outlined that new sanctions restrict the import of petroleum products, coal and coal products, and gold, while also limiting direct or indirect purchases and supply of these goods. The sanctions cover financial services, brokerage activities, and technical assistance related to the restricted commodities. The coal import ban began earlier in August, followed by the oil import ban at the end of December, according to government statements.
What will happen to America?
At the close of June, the United States imposed a ban on imports of Russian gold. The policy does not target gold held outside Russia at the time the embargo was enacted. Analysts note that gold exports make up a relatively small portion of Russia’s budget, with estimates suggesting revenues from gold are a few percent of total fiscal receipts. As a result, Western curbs on Russian gold are unlikely to collapse the broader economy. Historically, the United Kingdom has been a major buyer of Russian gold in recent years. Russia remains a leading global supplier, shipping several billion euros worth of gold annually. In 2021, Russian producers reported gold output of about 346 tons, with most of that quantity being exported. Major buyers in the global market include India and China, which together consume hundreds of tons of gold each year, shaping demand and prices on world markets. The overall impact of sanctions on the gold sector depends on how buyers adjust flows and pricing in the weeks and months ahead.