As the Russia/Ukraine conflict continues to intensify, the risk of deglobalization only grows. Amid escalating tactics from both sides, Vladimir Putin has issued nuclear warnings, while President Joe Biden has been rallying allies in an effort to defend democracies. All this is happening as gold makes its own appearance in this equation, being at the centre of new sanctions and driving a shift away from U.S. dollar hegemony.
In this post, we will explore how gold is playing a pivotal role in this conflict and how that could shape the future of global stability.
Putin gives a nuclear warning, Biden rallies allies – reads a Reuters headline three days before the one-year mark of Russia invading Ukraine. Also, the escalation of tactics and rhetoric is seen on both sides. The Reuters article went on to say:
U.S. President Joe Biden and Russian President Vladimir Putin have been sparring verbally, presenting starkly different views of the world and the Ukraine war, with Biden promising to defend democracies and Putin asserting the West was a threat to Russia.
Biden made an unannounced visit to Kyiv and Poland this week to show United States (and NATO) support for Ukraine “there should be no doubt: Our support for Ukraine will not waver, NATO will not be divided, and we will not tire”.
For his part, Putin suspended a bilateral nuclear arms control treaty, announced new strategic systems were on combat duty and warned that Moscow could resume nuclear tests. Putin said:
“The elites of the West do not hide their purpose … They intend to transform a local conflict into a phase of global confrontation. This is exactly how we understand it all and we will react accordingly because in this case, we are talking about the existence of our country.”
Also, the U.S. and European allies are set to impose a new round of sanctions on about 200 Russian individuals and entities. This newest package of sanctions, expected to be announced later this week, are expected to target Russian governors, family members of Russian government officials, and defense and technology firms.
The alleged sanctions
This round of sanctions is also expected to include provisions for “alleged sanctions- evasions networks”. These alleged networks help Russian oligarchs make investments in assets where it is difficult to track ownership, such as complex commercial real estate deals.
While the United States is “rallying its allies”, top officials from China are visiting Russia and China is increasing its verbal support for Russia. According to reports, Wang Yi, director of the Office of Central Foreign Affairs Commission of the Chinese Communist Party, will meet with the Russian Foreign Minister.
This visit is mere days after Secretary of State Antony Blinken said China is “considering” taking on a more active role in the Russia-Ukraine conflict, including providing “lethal weapons”.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.