G7's ban on Russian gold may hit India

World powers on Sunday agreed to ban gold exports from Russia at a G7 meeting in the Bavarian Alps that will be dominated by war in Ukraine and its impact on food and energy supplies across the globe.

Britain, the US, Canada and Japan will ban Russian gold imports as part of efforts to tighten the sanctions squeeze on Moscow.

Experts said the ban will impact India, the world's second-largest consumer of gold. "It would lead to an increase in premium (over and above the usual price) for India also. Alternatively, the Russian bars may be made available for supply through smugglers to India," said an expert who didn't wish to be named.

"Russia's annual gold production is 350 to 380 tonnes. The newly-mined gold in essence will not be available for the rest of the world through trading hubs like the UK and Switzerland. This will eventually lead Russia to look at supplying to markets that accept it. As it creates a supply shortfall, it will keep the premium higher in markets like Turkey and China," he said.