Western embargo on Russian gold to cost Kremlin $19B annually - Blinken

That’s according to U.S. Secretary of State Antony Blinken, who spoke in an interview with CNN, Ukrinform reports, referring to a transcript released by the Department of State.

Most of its gold Russia traditionally exports to the Group of Seven. Cutting that revenue flow is “significant,” Blinken stressed.

Unprecedented sanctions and the export controls are having a profound impact on Russia, the top diplomat added.

“Even as it gets oil revenues with higher prices, it’s unable to spend them because of the export controls.  It can’t acquire what it needs to modernize its defense sector, to modernize its technology, to modernize its energy exploration, which means that over time each of these areas is going to go in decline,” said Blinken.

Already, we’re seeing predictions that the Russian economy will shrink by eight to fifteen percent next year.  The ruble is being propped up artificially at great expense.  A thousand major international companies, have left Russia, and the standard of living for Russians is dropping.

“All of this is having an effect immediately, but it’s also having a cumulative effect,” Blinken noted.

As Ukrinform reported earlier, G7 leaders are set to ban Russian gold imports.