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UK says gold transactions fall under sanctions on Russia’s central bank

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March 25 (Reuters) – Britain revised its Russian sanctions guidance on Friday to make clear that British entities cannot help Moscow sell its gold reserves in a bid to evade punitive measures designed to shut it out of markets. international financiers.

Britain has raised concerns that Russia could be using gold deals to evade sanctions launched in coordination with its allies after Moscow led an invasion of Ukraine.

British entities are prohibited from transacting with the Russian central bank, finance ministry or wealth fund according to a February 28 announcement.

The government’s online guidance on how to implement that ban was updated on Friday, with the following summary:

“Updated guidance to clarify that the prohibition on providing financial services with foreign exchange reserve and asset management penalties also applies to transactions involving gold.”

“It is prohibited to provide financial services for transactions with the Central Bank of the Russian Federation involving its gold,” the guidance document says.

Prime Minister Boris Johnson said Thursday that there was evidence Russia was trying to circumvent sanctions using gold and that conditions would be tightened.

Russia could seek to monetize its gold reserves and access foreign exchange using bullion on the world market.

On Thursday, the US Treasury Department issued guidance on its website warning that gold-related transactions involving Russia may be sanctioned by US authorities.

(By William James; edited in Spanish by Juana Casas)

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