Introducing a ban on Russian gold, which is the country’s second most lucrative export after energy, will deprive Russia of access to $19 billion in revenue a year.
That’s according to US Secretary of State Antony Blinken, who spoke in an interview with CNN, Ukrinform reports, referring to a transcript released by the State Department.
Most of its gold Russia traditionally exports to the Group of Seven. Reducing that revenue stream is “meaningful,” Blinken pointed out.
Unprecedented sanctions and export controls are having a profound impact on Russia, the foreign minister added.
“Even if he gets oil revenues with higher prices, he is unable to spend them because of export controls. It can’t acquire what it needs to upgrade its defense sector, to upgrade its technology, to upgrade its energy exploration, which means that over time each of these areas will decline,” Blinken said. .
Already, we are seeing predictions that the Russian economy will contract by eight to fifteen percent next year. The ruble is artificially supported at great expense. A thousand major international companies have left Russia and the standard of living of Russians is falling.
“All of this has an immediate effect, but it also has a cumulative effect,” Blinken noted.
As Ukrinform reported earlier, G7 leaders are set to ban Russian gold imports.