The state of the Russian gold industry

Abstract

Official responses from the West to Yavlinsky's revelation were varied. Sceptics believed that the reserves were intentionally understated to portray an even weaker than expected Soviet economy and thus one in greater need of aid than initially anticipated. Others blamed the discrepancy on corruption, suggesting Western estimates were indeed accurate for what should have been, and that officials in the Communist Party, the security organs and the government had managed to pillage the gold pile. Still others have suggested that the gold was legitimately, albeit foolishly, liquidated in times when hard currency was in short supply. Finally, there are a few who suggest that the gold may never have existed at all, given that Western estimates were based on data from the beginning of the century combined with guesswork. Thus the on-going debate in certain policy-making circles has asked: did the West simply overestimate what the reserves should have been, or did a very significant quantity of gold disappear either to bolster the Soviet economy or to build up hard currency nest eggs for corrupt government officials? The answer to this question remains unknown. No records of Soviet gold accumulation have yet been made available and, in fact, it is not clear whether any even exist. Given this limitation, this article examines the history of Soviet gold reserves from