EXPLAINER: How the US and allies can freeze Russian gold

The U.S. and its allies said Thursday they’re moving to block financial transactions with Russia’s Central Bank that involve gold, aiming to further restrict the country’s ability to use its international reserves because of Vladimir Putin’s invasion of Ukraine. Putin has been building his gold stockpile since 2014.

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The move should further impact the country’s ability to launder money and will in effect apply secondary sanctions on people who trade in gold with Russia, experts say. “It is another way to close sanctions loopholes, and increase economic pressure on Russian entities,” said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security. The ban on gold transactions is also an attempt to prevent innovative financial transactions through other countries that continue to do business with Russia.

Read the full story and more from The Associated Press.