Britain said on Sunday the ban was aimed at limiting Russia’s ability to fund its military operation in Ukraine.
It was unclear whether there was consensus within the Group of Seven rich democracies on the plan, with European Council President Charles Michel and German Chancellor Olaf Scholz saying it needed to be discussed further.
The price of gold was up 0.5% around $1,835 an ounce on Monday.
HOW MUCH GOLD DOES RUSSIA PRODUCE?
Russia is one of the largest gold producers in the world, along with China and Australia.
Last year, it extracted 314 tons of gold, according to the Russian Ministry of Finance, which represents nearly 10% of the metal extracted in the world. This gold is worth about $19 billion at current prices.
Polyus is the largest gold producer in the country, followed by Polymetal.
WHERE DID RUSSIAN GOLD EXPORTS GO BEFORE THE CONFLICT?
Russian gold miners mainly sold their gold to Russian commercial banks, which usually resold it to the Russian central bank or exported it.
In recent years, the vast majority of Russian gold has been sent to Britain, the largest bullion trading and storage center in the world.
Britain imported $15.2 billion worth of Russian gold last year, according to British Customs data. From there, it can be re-exported to other markets.
In recent years, Russia has also sent gold to countries such as Switzerland, Turkey and Kazakhstan, according to Russian customs data.
WHAT HAPPENED AFTER RUSSIA SENT TROOPS TO UKRAINE?
Since February 24, Russian gold exports to the West have largely ceased.
Western governments have sanctioned major Russian banks specializing in gold trading, including VTB, Otkritie and Sberbank, and many international banks, refiners and shippers have stopped dealing with Russian bullion.
On March 7, the London Bullion Market Association (LBMA) suspended its accreditation of Russian precious metals refiners, prohibiting them from selling their new production in London.
Britain imported 29 tonnes of gold worth $1.7 billion from Russia in February, according to British customs data from the UN Comtrade database. In March, the last month for which data was available, Britain imported just 26 kilograms from Russia.
WHERE IS RUSSIAN GOLD NOW?
The Customs Service and the Central Bank of Russia have suspended the publication of import and export data and information on state gold reserves.
According to Russian miners, bankers and analysts, buyers of Russian gold now include the country’s central bank, people in Russia who want a safe investment and buyers in Asia, where most countries have not sanctioned gold. Russia.
” Gold Exports [de la Russie] have already been redirected since the start of the war, flowing eastward rather than westward, which reflects the self-sanctioning of gold market players in the western world,” Carsten Menke said. , analyst at Julius Baer.
“The implications of a ban on the gold market are probably very limited,” he added.