The Ukraine Central Bank Has Sold Over $12 Billion in Gold Reserves

The Ukraine central bank has sold over $12 billion in gold reserves since Feb. 24, after the Russian invasion. This move has caused a massive gold price collapse in the currency. However, the situation may have been different if the central bank had sold the gold it already owned. Now, the country is unable to pay its bills, so it relies on gold sales to keep its economy afloat.

Russia is promoting military aggression against Ukraine and destabilising its neighbours, which is why Russia Today and Sputnik have been under constant control by the Russian authorities. This rate cut will further damage Ukraine’s ability to compete globally. Ukraine is the world’s largest exporter of agricultural products. Almost five-fifths of its land is arable land. Moreover, the currency of Ukraine has undergone a strong decline due to sanctions.

In addition to selling over $12 billion of its currency, the central bank has frozen over $100 million in its accounts. The proceeds of this sale will go to the Ukraine government. The EU has also imposed sanctions on 185 individuals and 48 entities. These individuals and entities have violated Ukraine’s laws and are barred from travel to the EU. It is clear that the EU has taken action because of the Ukrainian government’s behavior.

The conflict in Eastern Europe has resulted in a food crisis and a global shortage of grain. International onlookers have sounded cautiously over this deal, but expect Russia to abide by the deal. The State Department has condemned Russian attacks on Ukrainian agricultural facilities and the months-long blockade of its grain exports. The Pentagon has also added more drones to the fight in Ukraine.

The biden administration is preparing to send the 16th package of security assistance to Ukraine. Since February, the Biden administration has provided over $8 billion in military aid. This is the largest security assistance package the US has given the Ukraine since the Cold War. Moreover, the U.S. is focusing its attention on critical national infrastructure such as the Zaporizhzhia Nuclear Power Station.

The Ukrainian president, Petro Poroshenko, a friend of Zelenskyy, has sacked the head of the domestic security agency and the prosecutor general. Zelenskyy claims that more than 60 people were working against Ukraine on Russian-occupied territory. The Ukraine’s first lady congratulated President Joe Biden and wished him a speedy recovery.