Recommendations for restoring order on the "golden front" of Russia's war with the collective West
In two years (2020-2021) precious metal was mined in the country 660,7 tons, and gold exports amounted to 94,15% from all metal mining. This has never happened in the history of the Russian state.. At least, for that period, for which statistics are available. Before that, the main part of the gold mined in the country was purchased by the Bank of Russia to replenish international (gold and foreign exchange) reserves of the Russian Federation, but in March 2020 the Central Bank announced, that 1 April stops buying precious metal.
Gold as a strategic resource was sent outside the country, mainly to the UK. AT 2020 year to the islands of Foggy Albion was sent 290 tonnes, at 2021 year - 266 tons of precious metal. Thanks to the collective West, which the, freezing the gold and foreign exchange reserves of the Russian Federation, tried to stop the insane squandering of this strategic resource.
At first, sanctions were imposed on those Russian banks, who have traditionally been involved in the sale of gold abroad (VTB, Gazprombank, Sovcombank, Sberbank and others.).
Secondly, London Bullion Market Association (LBMA) 7 March announced, which removes all six Russian refineries from its list of accredited companies. Their products (standard gold bars) was deprived of status good delivery.
Thirdly, sanctions were imposed, who banned the purchase of precious metal from Russia. Washington and London banned gold in March, located in the international reserves of the Russian Federation. At the end of June, the United States banned the import of any gold from Russia. In early July, Japan announced a gold embargo. In July, such a ban was introduced by the European Union as part of the seventh package of sanctions.. To him 21 July joined the UK. 3 August, Switzerland joined the EU gold sanctions. a situation, very reminiscent of the golden blockade, which the West declared almost a century ago (at 1925 year) Soviet Union.
In March, the Bank of Russia announced the resumption of purchases of gold in reserves. One can only guess about these purchases, since the Central Bank, referring to the sanctions war, closed information about gold reserves. However, according to a number of indirect signs, purchases are very frail.
As it appears, Russian gold miners have a very difficult life. true, in early March of this year, we finally managed to cancel the 20% VAT on the purchase of gold by individuals on the Russian market. There is hope, that part of the gold produced will be bought by citizens, but, according to the most optimistic estimates, purchased by "physicists" this year will be no more than 50 tons of gold.
so, annual gold production in Russia not less than 300 tonnes. "Physicists" will be bought 50 tonnes. by the Central Bank, according to his attitude, about the same. What to do with the rest 200 tons?
experts say, that Russian gold miners are intensively looking for "holes" in the sanctions curtain, built by the collective West. In this search they made a U-turn to the east. At the end of last year, the following countries became the main importers of the precious metal (in parentheses is the share in world gold imports, %): Switzerland (23,4); India (14,1); United Kingdom (13,6); China (11,1); Hong Kong (7,4); Singapore (3,7); USA (3,5); Germany (2,8); Arab United Emirates (2,7); Thailand (2,1); Italy (1,9); Canada (1,7); Cambodia (1,5); Turkey (1,4); Austria (1,3). Not hard to guess, that the search for alternative markets for gold is carried out in countries, not included in the list of unfriendly states. More specifically, in China, India, OAE, Cambodia, Turkey and several other countries. However, so far it's just a search, it didn’t come to real deliveries.
Information passed at the end of July, that Russian gold miners faced an export ban by the Federal Assay Office. This organization does not issue permits for transactions due to the fact that, that Russian gold is offered at a big discount. And without a discount, today it is difficult for Russian miners of any resource to sell anything abroad. for example, Oil supplies from Russia to India are coming at almost a 30% discount.
However, gold miners complain, that the Bank of Russia agrees to buy gold from them also at a large discount in relation to world prices. Instead of a price premium, which should have stimulated the development of the "currency shop" of the country, we see, that the Central Bank with its discounts is strangling the extraction of the precious metal in the country.
Generally, Russia's "currency shop" is driven into a complete dead end. One side, this is the collective West with its golden sanctions. On the other hand, it is money power, who boycott purchases of gold in reserves.
by the way, in a normal civilized state, gold reserves should not be administered by the Central Bank, and the Ministry of Finance. So, by the way, was in the USSR. So, by the way, the state of affairs with the US gold reserve today (more 8000 tons of US gold reserves are on the balance sheet of the Treasury).
It would seem, the Russian Ministry of Finance today has the opportunity to create its own gold reserve. Last year, a decision was made to, to the National Welfare Fund (FNB), administered by the Ministry of Finance, other than foreign currencies, add gold. At the beginning of February in the FNB, according to the Ministry of Finance, It was 405,7 tons of precious metal. From the end of February, the Ministry of Finance stopped filling the NWF with currencies, since the risk of their freezing and even confiscation by the collective West has sharply increased. But, probably, it is possible and necessary to increase the gold reserves of the Ministry of Finance, but for some reason the ministry does not do this. 3 August, the following information appeared on the website of the Ministry of Finance: in August, the expected volume of additional oil and gas revenues of the federal budget, related to the excess of the actual oil price over the base level, predicted to be 359,5 billion rubles. In this way, total amount of additional oil and gas revenues, which the Ministry of Finance, according to the budget rule, should have directed to the purchase of gold and currency, is 284,8 billion rubles. At the same time, the Ministry of Finance reminds, that due to the temporary suspension for the current year of certain provisions of the budget rules, associated with the use of additional oil and gas revenues of the federal budget, the purchase of foreign currency and gold at the expense of these funds will not be made.
With the purchase of foreign currency is understandable: she is toxic, can be frozen at any time. But why did the purchase of gold stop?? The softest, what can i say here: this is a giveaway game of the Russian Ministry of Finance in the conditions of the sanctions war.
And now let's move on to Neglinka (official address of the Central Bank). They recently published estimates of the balance of payments for the first half of the year. 2022 year. The positive trade balance in the first half of the year is impressive - 158,4 billion dollars. This "achievement" is obtained due to the fact that, that exports of goods and services exceeded their imports twice. That is, not even currency rain fell on Russia, and the currency downpour. By the end of the year, the Bank of Russia forecasts, that the excess of exports over imports will be 277 billion dollars. Interest on 70-80 it's a "toxic" currency, that is, a poisonous currency shower fell on our heads.
Can we protect ourselves from it?? We can at least partially. Let me tell you about this measure., how to purchase gold on the world market. Today we are doing the opposite.: trying to sell gold on the world market, receiving toxic currency for it. And the excesses of toxic currency should be converted into precious metal, through which to increase the gold reserve of Russia.
You can learn from yourself. Late 1970s, after the Jamaica Conference 1976 the demonetization of gold was announced, the price of the precious metal in the world market began to grow rapidly. This put the US dollar at risk. The United States decided to bring down the price of gold by intervening from the gold reserve. More than 200 tons of metal. Washington forced the IMF to do the same operation. It was sold at least 200 tonnes. A significant part of this gold was bought by the Soviet Union through shell companies.. You can read about it in my bookGold in the economy and politics of Russia» (M.: Ankyl, 2009).
An even better example is China.. For many years it has been ranked first in the world in the production of precious metal. (annual production 350-500 tonnes). And in China, the mined metal is not exported (there is a tacit ban on the export of metal). Furthermore: China imports precious metal, and in volumes, exceeding the annual production. In some years, gold imports exceeded 1000 tonnes. Last year, China imported 759 tons of precious metal in the amount 47,3 billion dollars. The main suppliers of gold to China were (list in descending order of supply volumes): Switzerland, Australia, South Africa, Hong Kong, Singapore, Canada, Japan, Germany, Russia, OAE, Tajikistan, Taiwan, South Korea, Uzbekistan, Italy.
A number of other leading gold-mining countries are also major importers of the precious metal.. So, USA, which in the ranking of countries in terms of gold production last year were in 4th place (180 tonnes), imported into 2021 year 250 tons of precious metal. Canada took 5th place (170 tonnes), while importing 282 tons. I do not exclude, that part of the metal purchased by the United States and Canada fell on Russian gold (his purchases were made in the London market).
Suggestions for restoring order on the "golden front" of Russia's war with the collective West.
- Complete ban on the export of gold from Russia.
- The adoption by the monetary authorities of the Russian Federation of measures for guaranteed purchases of gold, mined domestically, in order to further increase the gold reserve.
- Organization of purchases of gold on the world market due to the huge reserves of "toxic" currency accumulated by Russia; direction of the purchased metal to the gold reserve of the Russian Federation.
Valentin KATASONOV
