G7 to impose ban on imports of Russian gold

The Group of Seven nations, a bloc of the world's wealthiest states, plans to impose a ban on imports of Russian gold, US President Joe Biden said in a tweet on June 26.

Gold "is a major export that rakes in tens of billions of dollars for Russia," he said on Twitter.

The US and other western nations, notably those in the EU, have been trying to squeeze possible streams of revenue for the Kremlin, particularly in energy and commodities, after Russian leader Vladimir Putin invaded Ukraine.

Last year, Russia produced 333.4 mt, the second largest gold mining country after China with its 370 mt output. Russia increased gold mine production by 0.7% from 2021 and accounted for 11% of the world's total, estimated at 3,000 mt.

Russia's 10 largest gold miners together produced 208 mt providing 62.5% of the country's total gold volume, according to IGT.

Back in 2021, four gold producers with operations in Russia -- Polyus, Polymetal, Kinross and Nord Gold -- remained in the world's top 20 gold miners. Two of them – Polymetal and Nord Gold – have their major operations in Russia, but have assets in other countries too. Kinross has recently left its operations in Russia to Highland Gold, and the latter stands to be the world's top 20 this year.

A year ago, IGT suggested that Russia stood a chance to become the world's largest producer of yellow metal this decade, as it kept expanding mining operations.

Spot gold traded on the London Metal Exchange was little changed on June 24 at $1,828/oz, down from a high for the month at $1871.50/oz on June 10.