JRL NEWSWATCH: “Russia’s New Shield From U.S. Sanctions: A Siberian Gold Mine; Sukhoi Log, widely seen as one of the world’s largest untapped gold deposits, could give Moscow a bulletproof currency backstop” – Wall Street Journal/ Thomas Grove

February 8, 2019 JRL Russia List Economy, Business, Investment, Trade, JRL NewsBlog, Minerals, Sanctions

Map of Russia and Russian Flag adapted from images at state.gov

“… Tests commissioned by the company last year and undertaken by Australia-based AMC Consultants, along with a scoping study conducted in 2018, determined that there are 63 million ounces of gold at Sukhoi Log, Polyus has told investors. While independent mining analysts haven’t confirmed that estimate on their own, many of them refer to Sukhoi Log as one of the world’s largest untapped gold deposits. … Polyus sells its gold exclusively to large Russian state banks, which then resell it to the country’s central bank. Once mining begins, the bank can use the mine’s gold to support its ruble currency or sell it for extra foreign currency in times of crisis. Gold has become a major holding in Russia’s central bank reserves, with its share nearly double what it was in 2014, when the bank started dumping its U.S. Treasury and dollar holdings amid increased tensions between Russia and the U.S. …”