How much gold was in Russian treasuries after World War II?

Author of the entry: Mennica Skarbowa
Date of entry: August 27, 2018

According to the latest data from the Central Bank of Russia, Russia has purchased 106 tons of gold since the beginning of 2018. As a result, its reserves have already reached 1,944 tons. The replenishment of the treasury was accompanied by a rapid sell-off of US Treasury bonds. In April, the Federation disposed of US assets worth $47.4 billion, which is almost half of its current holdings. One can guess that one of the goals of President Vladimir Putin's strategy is to return to the situation of 1941, when the USSR's reserves reached their historic record and weighed as much as 2,800 tons.

FROM THE TSAR'S TREASURY TO THE BOLSHEVIK REMNANTS

Our last post was about the lost riches of Tsarist Russia. Today, we will focus on a slightly closer – but equally interesting – history of the USSR's reserves. It turns out that the losses from the period of the revolution were more than made up for by the communists. Let us recall that just before the outbreak of World War I, there were approximately 1,400 tons of gold in the tsarist treasury. The war and the subsequent revolutionary period caused the gold to dwindle. Just before the Bolshevik coup, the tsar decided to transport some of the remaining gold to Siberia. When the Bolsheviks finally took control of the treasure sent to Siberia in 1920, only a little over 300 tons remained of the 600 tons.

RECONSTRUCTION UNDER STALIN

Deficits in the budget of the revolutionary authorities in Russia meant that gold began to be used to finance current needs, such as the purchase of food and industrial goods. As a result, by 1928, Soviet reserves had fallen to 150 tons. Recovery only came about during the reign of Joseph Stalin, who believed that gold was the economic pillar of the country's rapid industrialization. The determination of the USSR leader is evidenced by the fact that after his death, the communists possessed as much as 2,500 tons of gold.

... AND BACK TO THE STARTING POINT

During the reign of Stalin's successor, Nikita Khrushchev, reserves began to decline again, eventually falling to 1,600 tons. Leonid Brezhnev left even less behind: 437 tons. Yuri Andropov and Konstantin Chernenko attempted to replenish the treasury, increasing reserves to 719 tons. The final blow to Soviet reserves was dealt by the last leader of the USSR, Mikhail Gorbachev, after whose departure in 1991 only 290 tons remained in Russian treasuries.

Based on: "Where are Russia’s vast gold reserves hidden?", www.rbth.com