Russia’s Central Bank would be prevented from using its gold reserves to fund the government’s unprovoked war in Ukraine under bipartisan legislation recently introduced by U.S. Reps. Peter Meijer (R-MI) and Brian Fitzpatrick (R-PA).
“We must continue all efforts that guarantee [Russian President Vladimir Putin’s] government feels maximum pain from economic and diplomatic sanctions,” said Rep. Meijer on Monday.
The Stop Russian Government and Oligarchs from Limiting Democracy (GOLD) Act of 2022, H.R. 7068, which the congressmen cosponsored on March 11 with bill sponsor U.S. Rep. Elissa Slotkin (D-MI), would prohibit Americans from engaging in transactions with foreign persons who purchase or transact in gold from the Russian Federation, according to the text of the bill. U.S. Sens. John Cornyn (R-TX) and Maggie Hassan (D-NH) on March 7 introduced the identical bill, S. 3771, in their chamber.
Russia, currently one of the world’s largest sovereign gold owners, has been buying more gold as the value of the ruble crashes due to international sanctions imposed on the country after it invaded Ukraine, according to information provided by Rep. Meijer’s staff.
“The existing loophole in current sanctions that allows Russia to liquidate gold reserves enables Putin and his cronies to continue financing their criminal war in Ukraine,” Rep. Meijer said. “Our bill closes this loophole, ensuring that Putin’s vile regime finds no way around the United States’ and the international community’s crippling sanctions.”
Specifically, the measure would impose secondary sanctions to anyone transacting with or transporting gold from Russia’s Central Bank holdings or selling gold physically or electronically in Russia; and direct the U.S. Treasury Department to develop compliance guidelines for U.S. citizens to ensure Americans avoid unknowingly investing in or transacting with Russian gold, according to the bill’s text.
“As the leader of the free world, the U.S. cannot afford to inflict weakly enforced half-measures when it comes to economic sanctions against Russia. We must continue to do everything in our power to fully isolate Putin and his cronies,” said Rep. Fitzpatrick. “Our bipartisan Stop Russian GOLD Act takes the crippling sanctions the US has already imposed one step further by freezing Russia’s gold reserves that are helping fund Putin’s war machine.”