Russia is aiming to become of the largest gold producers in the world

Despite some disruption caused by the Covid-19 pandemic, Russia is expected to overtake China as the world's leading gold producer by 2029, with an average annual growth of 3.7% between 2020 and 2029. This forecast was presented in a report by Fitch Solutions Country Risk & Industry Research, whose experts believe that in the short to medium term, strong domestic gold demand will support rising gold production in Russia. Despite a 900-case coronavirus outbreak at Polyus Gold's Olympiada mine in the Krasnoyarsk region of eastern Siberia - one of the largest operations in the world producing 1,389.2 Kozz Gold in 2019 - most of the mines have remained virus-free and operational so far. Hence, there is limited downside risk to the current gold production forecast for 2020, but at the same time there are other forces speaking for the Russian gold industry. "The expansion of US sanctions and the tensions between the two countries have led the Russian central bank to increase its gold reserves," the analysis said. "In addition, the Libyan stabilization law is expected to go through the House Foreign Affairs Committee in early August, imposing additional sanctions on Russia for its alleged role in escalating the civil war in Libya. The law would allow the Trump administration to raise funds freeze in American banks, blocking access to dollar-denominated assets, which in turn would sustain increased domestic demand for Russian gold. On palladium, Fitch says production in Russia is well on the way to expanding in 2020 as the sector has not experienced any disruption related to the Covid-19 pandemic. "In fact, Russian palladium producers will benefit from disruptions in supplies to external markets such as South Africa," the report said. "Top producer Norilsk Nickel will continue to lead the automotive catalytic converter market, supported by smooth operational capabilities and its position as a low cost producer. On April 30, the company confirmed that it will maintain its production forecast for Fiscal Year 2020, which is expected to be 2.65 -2.78 Moz Palladium will produce ". According to Fitch, according to Fitch, given that most palladium mines in South Africa continue to operate below capacity as lockdown measures are gradually being lifted, production in the country is expected to shrink 8.7% this year, while Russian palladium production is expected will increase by 2.5%.