BY OUR POLITICAL CORRESPONDENT
VLADIMIR Putin is sitting on a record-breaking mountain of cash—leaving Western sanctions looking like a blunt instrument.
Sensational new figures from the Russian Central Bank reveal that the Kremlin’s international reserves have skyrocketed to a staggering $826.8 billion.
The massive surge means Putin’s war chest has grown by nearly $40 billion in just a fortnight, up from $786.9 billion recorded on January 23.
The eye-watering total marks a new all-time high for the Russian Federation, sparking fresh fears that the West’s attempts to “choke” the Russian economy are falling flat.
Critics last night claimed the figures prove the “Iron Curtain” of sanctions is more like a “beaded doorway.”
Despite years of trade bans and the freezing of assets, the Kremlin appears to be finding plenty of ways to keep the coffers overflowing.
One insider said: “While the British public faces a cost-of-living squeeze, Putin is counting his gold. It’s a slap in the face for everyone who thought sanctions would bring the regime to its knees.”
Economists believe the surge is driven by high energy prices and “shadow” trade routes that allow Russia to bypass Western restrictions.
Much of the stash is held in gold and foreign currencies like the Chinese Yuan, which are beyond the reach of London and Washington.
But the news will be a bitter pill for Western leaders who promised to cripple the Russian economy following the invasion of Ukraine.
These are “emergency” assets held by a central bank.
They usually include gold, foreign currency, and “Special Drawing Rights” (a type of international reserve asset).
They act as a safety net to keep a country’s economy stable and pay for imports.
Gold Prices: Gold makes up a huge chunk of Russia’s reserves. As global gold prices rise, so does the value of Putin’s stash.
The “Pivot to Asia”: After being cut off from the US Dollar and Euro, Russia moved its money into the Chinese Yuan and increased its physical gold holdings.
Oil Wealth: Despite price caps, Russia continues to sell oil and gas to “friendly” nations like India and China, funneling the profits back into the bank.
While the Reserves look healthy on paper, the Internal Economy is struggling with high inflation and a labor shortage.
However, the $826.8 billion figure is a powerful propaganda tool for Putin, allowing him to claim that Russia is “sanction-proof.”
