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Mining Weekly/Marleny Arnoldi/3-5-2020
“The ongoing and expanding US sanctions on Russia are expected to paradoxically support gold production in Russia in the short term, says Fitch, adding that the rising risk of Russian State banks being frozen out of dealing in dollar-denominated assets altogether, as bilateral relations remain strained, is pushing the Russian central bank to increase its holdings of gold.”
USAGOLD note: In short, even as Russia rises to the top, most of its production will be kept within its borders as a monetary reserve asset. With the gold price rising consistently over the past few years, this strategy has proven to be a successful one for Russia’s central bank and its national balance sheet.
