Ban on new Gold imports from Russia seen as 'largely symbolic'

The plan by some Group of Seven nations to ban new gold imports from Russia is “largely symbolic” as flows have already been restricted by sanctions, according to analysts.

The US, UK, Japan and Canada plan to announce the ban during the G-7 summit that started Sunday in Germany. While the UK government said over the weekend that “this measure will have global reach, shutting the commodity out of formal international markets,” analysts played down the potential impacts as the London Bullion Market Association, which sets standards for that market, removed Russian gold refiners from its accredited list in March.

Bullion climbed as much as 0.8% on Monday as the dollar weakened. Prices may have received a little initial support from the news, but most analysts said the sanctions are unlikely to have a longer-term impact.

“The impact from a ban on Russian gold imports by G-7 nations is likely to be fairly limited, given that the industry already took steps to restrict Russian gold,” said Warren Patterson, head of commodities strategy at ING Groep NV. “It looks as though its largely symbolic.”