By SCM FOREIGN AFFAIRS REPORTER
VLADIMIR Putin is laughing all the way to the bank after a massive surge in gold prices handed Russia a staggering £165billion ($216bn) windfall.
The Russian tyrant’s hoard of “untouchable” bullion has rocketed in value since the invasion of Ukraine, effectively wiping out the impact of the West’s attempt to cripple his economy.
When the war began in 2022, G7 nations froze around £230bn of the Kremlin’s overseas assets, thinking they had Putin in a financial headlock.
But thanks to a global “gold rush” that has seen prices hit record highs of over $4,700 an ounce, Vlad’s mountain of gold is now worth almost exactly what was taken away.
Safe as Houses
Experts say the Kremlin’s “Fort Knox” strategy has paid off in spades.
Unlike cash held in London or New York, the physical gold—stashed deep in Russian vaults—cannot be touched by Western sanctions.
A fresh Bloomberg analysis reveals that the Bank of Russia’s gold holdings have more than doubled in value. Gold now makes up nearly half of Russia’s total reserves, a massive jump from just 21% before the tanks rolled across the border.
One financial insider told The Sun: “Putin has been playing the long game. While we froze his bank accounts, the price of the gold in his basement has gone through the roof. It’s a massive middle finger to the sanctions regime.”
The price hike has been fueled by global jitters, with investors ditching the US dollar for the safety of gold as tensions flare in the Middle East and trade wars loom.
Russia, the world’s second-largest producer of the yellow stuff, is now sitting on a pile of bullion worth an estimated $326.5 billion.
Even though Russian gold is officially “banned” from London markets, the Kremlin is still able to move its stash in Asia, providing a vital lifeline for Putin’s war machine.
Shortly after the February 2022 invasion, Western allies froze approximately $300 billion (£230bn) of Russia’s foreign currency reserves held abroad.
Foreseeing trouble, Russia spent years stockpiling physical gold. Between 2014 and 2020, they added some 40 million ounces to their vaults.
Gold prices have skyrocketed by over 70% in the last year alone, driven by “safe-haven” buying amid geopolitical uncertainty and inflation.
The Result:
The valuation gain of $216 billion means Russia has regained much of its “lost” financial capacity without ever getting its frozen cash back.
