Russia Reaps $216 Billion Gold Windfall Amid Ukraine War, Sanctions Backfire

• Russia gained an estimated $216 billion from a global gold rally since February 2022, nearly matching its frozen sovereign reserves.
• Gold now accounts for 43% of Russia's international reserves, up from 21% before the Ukraine war.
• Western sanctions froze $300 billion of Russian central bank assets, but the gold surge has blunted their impact.
• Gold prices soared due to persistent inflation, geopolitical tensions, and central bank demand for safe-haven assets.
• The gold rally has allowed Russia to shoulder fiscal pressures and sustain its war effort, challenging Western strategy.

Why It Matters: Russia's $216 billion gold windfall has significantly offset Western sanctions, bolstering its war economy.