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Four U.S. senators are introducing a bill to place sanctions on Russia\u2019s gold. \u201cThis legislation would deter the purchase of Russian gold and close this loophole that allows the Russian Federation to soften the financial impact of sanctions,\u201d the senators explained. <\/strong>\u201cBy sanctioning these reserves, we can further isolate Russia from the world\u2019s economy and increase the difficulty of Putin\u2019s increasingly-costly military campaign.\u201d<\/strong>\n<\/p>\n \n \u201cThe free world\u2019s sanctions are devastating Russia\u2019s economy \u2014 and as long as Putin continues his horrific invasion, we must keep up the pressure,\u201d Senator King tweeted. He added that he has joined Senators Cornyn, Hassan, and Hagerty \u201cto introduce sanctions on Russia\u2019s gold reserves.\u201d<\/p>\n In a follow-up tweet, he explained:\n<\/p>\n Russia\u2019s gold supply is one of the few remaining assets that Putin can use to prop up his country\u2019s economy. By sanctioning these reserves, we can further isolate Russia from the world\u2019s economy and increase the difficulty of Putin\u2019s increasingly-costly military campaign.<\/p>\n<\/blockquote>\n \n The senators\u2019 announcement explains that \u201cThe Russian Federation is purchasing gold to offset the devaluation of its currency, the ruble, and is then selling that gold on international markets in exchange for high-value currency.\u201d<\/p>\n The bill \u201cwould apply secondary sanctions to anyone transacting with or transporting gold from Russia\u2019s central bank holdings or selling gold physically or electronically in Russia,\u201d the announcement adds, elaborating:\n<\/p>\n The secondary sanctions in this legislation would deter the purchase of Russian gold and close this loophole that allows the Russian Federation to soften the financial impact of sanctions.<\/p>\n<\/blockquote>\n \n Meanwhile, a number of senators are concerned about Russia evading sanctions using cryptocurrency, including Senator Elizabeth Warren<\/a>.<\/p>\n The G7 countries and the European Union<\/a> have already said that they are taking measures to prevent cryptocurrency from being used to evade sanctions. In addition, the U.S. Treasury Department<\/a> said it is monitoring crypto activities to prevent sanctions evasion.<\/p>\n However, a number of experts have said that cryptocurrency is not an effective tool<\/a> to evade sanctions for Russia, including the CEOs of cryptocurrency exchanges Coinbase and Binance.<\/p>\n Carol House, the director of cybersecurity for the National Security Council, concurred. She stated<\/a>: \u201cThe scale that the Russian state would need to successfully circumvent all U.S. and partners\u2019 financial sanctions would almost certainly render cryptocurrency as an ineffective primary tool for the state.\u201d<\/p>\nUS Lawmakers Seek to Sanction Russia\u2019s Gold<\/h2>\n
\nU.S. Senators John Cornyn (R-TX), Maggie Hassan (D-NH), Bill Hagerty (R-TN), and Angus King (I-ME) announced Tuesday the introduction of the \u201cStop Russian Government and Oligarchs from Limiting Democracy (Stop Russian GOLD) Act.\u201d<\/p>\n![\"US](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/03\/king-tweet.jpg\" "\\"US")
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\nSenator Cornyn described: \u201cRussia has taken a page out of Venezuela\u2019s book by exploiting a loophole in current sanctions that allows them to launder money through the purchase and sale of gold.\u201d<\/p>\n\n
\nSenator Hagerty opined: \u201cThese bipartisan secondary sanctions on Russia\u2019s gold transactions will build on the Biden administration\u2019s recent Russia sanctions and further choke off Russia\u2019s economy from capital.\u201d<\/p>\n