Bipartisan legislation would close a loophole in current sanctions against the Russian Central Bank to prevent Moscow from using its gold reserves to fund the war in Ukraine
WASHINGTON, D.C. – U.S. Representative Peter Meijer (R-MI) today joined Representatives Elissa Slotkin (D-MI), Brian Fitzpatrick (R-PA), Susie Lee (D-NV), Mikie Sherrill (D-NJ), and Joe Wilson (R-SC) in introducing the Stop Russian Government and Oligarchs from Limiting Democracy (GOLD) Act of 2022, a bipartisan, bicameral bill to prevent Russia’s Central Bank from using its extensive gold reserves to fund the government’s unprovoked war in Ukraine.
Russia is currently one of the biggest sovereign gold owners in the world, with gold making up roughly 20 percent (approximately $130 billion USD) of the country’s total reserves. Since the international community began enforcing sanctions against Russia after the invasion of Ukraine, the Russian government has been buying more gold as the value of the ruble crashes.
“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,” said Rep. Meijer. “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. We must continue all efforts that guarantee his government feels maximum pain from economic and diplomatic sanctions.”
“As Ukrainian civilians are fleeing for their lives, we have to make the consequences for Putin’s barbarism as painful as possible for him and his regime, and we need to slam shut every door he could try to use to evade sanctions,” said Rep. Slotkin. “This is a bipartisan effort to shut one of those doors and make sure Russia can’t use its gold reserves to fund the atrocities being carried out across Ukraine. Our bill will close this loophole and block another potential revenue stream that would otherwise be used to prop up Putin’s regime and continue to fund his war against the Ukrainian people.”
The Stop Russian GOLD Act is being led in the Senate by a bipartisan group including Senators John Cornyn (R-TX), Maggie Hassan (D-NH), Bill Hagerty (R-TN), and Angus King (I-ME). The full text of the bill is available here.
The Stop Russian GOLD Act would:
- Close a loophole in existing restrictions on Russia by imposing 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 clear compliance guidelines for U.S. citizens to ensure Americans avoid unknowingly investing in or transacting with Russian gold.
