New Delhi (CNN Business)Some of the wealthiest countries in the worldhave banned Russia's gold imports, All power about the Russian economy.
Biden and his fellow G7 leaders are currently meeting in Germany, a new way to punish President Vladimirputin's government for the invasion of Ukraine while trying to limit its impact on the stressed world economy. Are discussing.
British Prime Minister Boris Johnson said on Sunday that the ban would hurt Putin.
"The measures announced today will hit Russia's oligarchs directly and attack the center of Putin's war machinery," Johnson said in a statement released by Downing Street on Sunday. Was done.
London's trade had already been suspended
Sanctions "will have a significant impact on Putin's ability to raise funds," the press release added.
The import ban applies to newly mined or refined gold, Downing Street said. However, it does not affect gold mined in Russia and previously exported from Russia.
Since the invasion of Ukraine on February 24, Russia's gold exports have already been shunned by some major market players.
The London Bullion Market Association (LBMA), which regulates the world's largest and oldest market, all six Russian gold miners and refineries on March 7 for physical gold and silver trading. Trading has been suspended.
The G7 will officially announce a ban on Tuesday. Canada and Japan have already participated, according to a British statement. Meanwhile, some European countries want to discuss the potential impact further.
What are the opportunities for India?
Monday's gold price rose 0.5% to $ 1,836.03. However, analysts said the ban would not have a significant impact on the long-termoutlook for gold prices.
"Gold made a very modest profit behind the announcement, but it doesn't structurally change the outlook for gold's direction," Oanda's senior market strategist Jeffrey Halley said on Monday. Stated.
"In fact, this is just the exercise of a rubber stamp of informal policies that have already been implemented," he added. In India, one of the
"We believe the impact on the international market will be fairly limited as the flow is already restricted by previous sanctions," said Sriram Iyer, senior research analyst at Reliance Securities. Mentioned the March action by the LBMA. ..
India is the world's second-largest gold buyer after China, and analysts say economic conditions have a significant impact on consumption patterns.
"This ban can lead to supply shortages due to the lack of Russian gold," Iyer said.
But he said this would not be the main driver of the market.
"We believe that the current macroeconomic situation of rising interest rates and expectations of a global recession will have a significant impact on market sentiment," Iyer added.
Mumbai-based brokerage firm Prabhudas Lilladher's commodities and currency research analyst Megh Mody said India may even have an "opportunity" to get gold from Russia at a lower rate.
"Like crude oil, it will be an opportunity to see if gold is available in the ruble," he said. "If that happens, India can receive gold at a discounted rate."
South Asian countries have soared Russia's oil at significant discounts since the beginning of the war. I did.
—Allie Malloy and Manveena Suri contributed to this report.