The failure of sanctions against Russia with Putin’s “golden” strategy

The Asia Times news site wrote: Russian gold worth billions of dollars is traded freely and 16 thousand restrictions and sanctions imposed against the Russian Federation have not had much impact on the Russian economy.

Sanctions against Russia will be of a strategic nature, according to Western countries. Thus, the restrictions were against shipping and trade, but the Russian gold market was virtually unaffected. As mentioned, England is the only country that has reduced the import of Russian gold.

According to data from the World Gold Council, Russia is currently the second largest gold producer in the world. In 2023, this country has sent most of its gold to China. Russia is expected to increase gold production by 4% per year by 2026.

Furthermore, the Russian Federation was able to protect its economy by isolating transactions in dollars. The Russian government was able to increase the value of its currency on the basis of gold. Other countries also consider gold as a guarantee against financial shocks. Therefore, in 2023, 110.6 billion dollars of this precious metal entered the coffers of central banks around the world.

Remember that on March 6, the price of gold exceeded the mark of $2,153 per ounce. Therefore, the value of this precious metal has reached an all-time high. These things saved the Russian economy from the crisis with the support of gold.