Putin: Czar Of Natural Gas, Crude Oil, Uranium & GOLD
by Vronsky, Gold-Eagle
Well-known Moscow journalist Dmitry Kalinichenko expressed it well: “Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future. No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.”
Nonetheless, the above comments provide valuable insights into what President Putin’s plan is most likely to be…and how it will eventually and materially benefit the Russian economy.
Russian Gold Reserves Tripled
Russia more than tripled its gold hoard since 2005 and holds the most since at least 1993, IMF data show. The country is boosting Central Bank reserves to diversify foreign reserves with a view to resolving issues related to ruble liquidity, central bank Governor Elvira Nabiullina said in February.
Additionally, Kazakhstan’s gold hoard jumped 33 percent in the past 12 months, data compiled by Bloomberg show. Kazakhstan is an ally of Russia…and is a former member of the Soviet Union (U.S.S.R).
This begs the mind-boggling question: What is shrewd Putin’s covert objective…and what does he stealthy have up his sleeve?
The following facts may shed light on where sagacious leader Putin is guiding his country. To understand where the astute Putin is coming from, one must know that today Mother Russia is #1 in Natural Gas Production, #1 in Crude Oil Production, #1 in Uranium Production…and #2 in GOLD Production…WORLDWIDE!
Natural Gas Production (Russia plus ally Uzbekistan make it the world’s #1 Gas Producer)
Crude Oil Production (Russia is the world’s #1 Crude Oil Producer)
As the world’s largest oil producer, Russia accounts for 12 percent of global petroleum output. Last year it again surpassed Saudi Arabia by pumping almost 10.4 million barrels per day (BPD). It is also one of the world’s largest exporters of oil, with nearly 5 million BPD. Moreover, with the world’s largest proven reserves of natural gas, Russia is also the top producer of natural gas, accounting for about 20 percent of the world’s total supply.
To be sure crafty Putin believes the very foundation of Russian economic growth depends on the extraction, processing and exploitation of its mineral raw resources. He is oft quoted as saying: “This is the key to Russia’s becoming a great economic power.” Effectively, the Russian economy is greatly dependent on the production of energy (i.e. Crude Oil and Natural Gas…not to mention URANIUM).
Uranium Production By Country (Russia is the world’s #1 Uranium Producer)
Take particular note Kazakhstan and Uzbekistan are Russian Allies and former members of the U.S.S.R. Together they produce 28,000 tonnes of Uranium per year, which is three times the yearly amount of the #2 producer Canada – and nearly 16 times the yearly production of the US. Literally, Russia and allies dominate the global Uranium market.
Kazakhstan was the last of the Soviet republics to declare independence following the dissolution of the Soviet Union in 1991; the current President, Nursultan Nazarbayev, has been leader of the country since then. Kazakhstan pursues a balanced foreign policy and works to develop its economy, especially its dominant hydrocarbon industry.
Kazakhstan is a bilingual country: the Kazakh language, spoken by 64.4% of the population, has the status of the “state” language, while Russian, which is spoken by almost all Kazakhstanis, is declared the “official” language, and is used routinely in business.
In 1991 Uzbekistan emerged as a sovereign country after more than a century of Russian rule – first as part of the Russian Empire and then as a component of the Soviet Union. The country’s official language is Uzbek, a Turkic language spoken natively by approximately 85% of the population. However, the Russian language remains in widespread use especially in business matters.
Last, But Certainly Not Least Is Russia’s Last Pillar Of Economic Strength is GOLD. In 2014 Russia ranked second in annual gold production worldwide per GFMS (one of the world’s leading economics consultants in precious metals, specializing in research into the global gold, silver, platinum, palladium, and copper markets).
Top 10 World Gold Producing Countries 2013/2014 (tonnes)
Central Bank Gold Reserves By Country
According to global analyst Michael Lombardi, “Between the first quarter of 2009 and the third quarter of 2014, Russia’s gold reserves soared 116%, from 531.87 tonnes to 1,149.80 tonnes. Gold currently accounts for 9.9% of the country’s foreign reserves. Why the sudden love for gold? Some see it as a sign the country is reducing its dependence on the U.S. dollar and the euro.”
Russia’s Central Bank Gold Buying Spree Since 2001 has allowed its gold hoard to more than triple from 400 tonnes to 1,238 tonnes. No other country is accumulating gold this fast.
In part the Central Bank of Russia has financed the gold purchases by methodically selling its stash of US Treasuries. The chart below clearly demonstrates unambiguously that Russia began its de-dollarization efforts before it was hit with Western sanctions. Moreover, Russia’s US T-Bond dumping activities is picking up steam.
According to Casey Research, “The message is clear, and it’s one that we accurately detected years ago and have monitored since: by offloading treasuries and loading up on gold, Russia is making an all-in bet against the US dollar, in favor of the yellow metal. Concurrently, it’s playing an active role, along with the likes of China, Iran, and Kazakhstan, in the expanding international movement to bypass the dollar’s use in trade settlement via the employment of currency swaps and other measures.”