Sanctions, Russian Gold Reserves and More- Goldman

• Q: What restrictions on reserves were announced and what is the impact?

• Q: What do we know about the size and composition of Russias FX reserves?

• Q: Where are their reserves held and in what securities?

• Q: What is the precedent and process for countries imposing restrictions on reserves?

• Q: Isnt there a concern this will undermine the reserve currency status of the Dollar (and Euro)?

In effect, the sanctions will likely apply to about 65% of CBR reserves, and the other 35% (held in gold and CNY) are ineffective at directly defending the currency in the Dollar market. To the extent that Dollar export revenues become unusable/illiquid, Russia could see less of an incentive to sell energy to the West (the main source of its reserve accumulation).

Q: What restrictions on reserves were announced and what is the impact?

In a coordinated release on Saturday night, leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States