> ## Content Index > Fetch the complete content index at: https://www.europeans.today/llms.txt > Use this file to discover other available public pages before exploring further. # The best-laid plans of mice and men... and Putin and his gold. - URL: https://www.europeans.today/2022/03/02/the-best-laid-plans-of-mice-and-men-and-putin-and-his-gold/ - Published: 2022-03-02T08:00:00.000Z - Updated: 2022-03-02T18:11:07.000Z - Description: The unprecedented package of tough and coordinated sanctions against Russia after the Ukraine invasion shows that war chests are only as good as the purpose for which they’re used. - Author: Rashmee Roshan Lall - Tags: COMMENT, Gold, Russia, Vladimir Putin, War in Ukraine ### The unprecedented package of tough and coordinated sanctions against Russia after the Ukraine invasion shows that war chests are only as good as the purpose for which they’re used. ###### First published: March 2022. --- If, like me, you’re wondering how Russia can be so rich — its war chest constitutes $630 billion and nearly 2,300 tonnes of gold — and still be rendered poor, it’s because our world ****is*** so interconnected. The $630 billion is in assets and deposits denominated in the world’s major currencies, i.e. the dollar, euro, sterling and the yuan. (Roughly, $60 billion of this may be forthcoming from the Chinese, but that’s not guaranteed. Six days into the invasion of Ukraine, Beijing is hardly rushing to give Russia a bear hug.) ![](https://storage.ghost.io/c/15/40/1540bec0-7154-4feb-b8e1-97f579155b08/content/images/2022/03/www-181.jpg) ###### The Bank of Russia owned just under 2,300 tonnes of gold at the end of November 2022\. | [World Gold Council](https://www.gold.org/goldhub/data/monthly-central-bank-statistics?ref=europeans.today) And then there’s the gold. Russia’s hoard is the sixth-largest in the world. As of now, it would be worth more than $150 billion. The problem is the sanctions and the coordinated weight of them. The Chinese could buy some gold from Russia’s central bank in return for swap lines, but the metal can’t be sold in a main bullion centre such as London or Switzerland. ### No billionaire owner. No wealthy shareholders. **PMP Magazine** only exists thanks to donations from our readers. [Support our independent journalism](http://support.pmp-magazine.com/?ref=europeans.today) The *Financial Times (FT)* quotes metal traders to say that Russia’s domestic gold producers such as *Polymetal* or *Polyus* are crippled by the sanctions on Russian banks. As they won’t be able to deal with international bullion markets, Russian gold producers will have to turn to their central bank instead, to raise the roubles required for staff salaries and operational costs. The *FT*’s Neil Hume writes that “this is something that has happened before, according to analysts.” And so to the best-laid plans of mice and men… and Vladimir Putin. Russia’s purchase of more than 1,200 tonnes of gold in the five years from the 2014 annexation of Crimea has turned out to be a liability. The idea was to reduce the exposure to US dollars but the unexpectedly tough and coordinated sanctions after the Ukraine invasion shows that war chests are only as good as the purpose for which they’re used. ![PMP Magazine](https://storage.ghost.io/c/15/40/1540bec0-7154-4feb-b8e1-97f579155b08/content/images/2021/09/end-flat-1.png "PMP Magazine") --- **What did you think of this article?** [🤩](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Great") [😀](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Good") [🤔](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Not sure") [😴](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Boring") [😮](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Surprised") [😭](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Sad") [🤬](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Angry") [🤯](https://forms.gle/tRe7igVtMPaiAPtJ8?ref=europeans.today "Gobsmacked") --- | **— AUTHOR —**▫ *[Rashmee Roshan Lall](https://www.europeans.today/author/rashmee-roshan-lall/), Journalist by trade & inclination. World affairs columnist.* ***∞*** *[www.rashmee.com](https://www.rashmee.com/?ref=europeans.today)* | GET THEM INVOLVED: Contact Your Politician | | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | --- --- ##### Sources **Text:** This piece was originally published in [Medium](https://rashmee.medium.com/the-best-laid-plans-of-mice-and-men-and-putin-and-his-gold-62fe2b591391?ref=europeans.today) and re-published in PMP Magazine on 2 March 2022, with the author’s consent. | The author writes in a personal capacity. - **Cover:** Unsplash/[Matt Flores](https://unsplash.com/photos/NpgN1gXdlSw?ref=europeans.today). (Licensed under a [Creative Commons Attribution-ShareAlike 4.0 International License](http://creativecommons.org/licenses/by-sa/4.0/?ref=europeans.today).) ![Creative Commons License](https://i.creativecommons.org/l/by-sa/4.0/88x31.png "Cover photograph license")