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Russia-West Economic Warfare
and the Consequences on Precious Metal Prices

The EU has accepted new sanctions against Russia, targeting energetics and military industry firms.

Sources on this: Al Jazeera, Yahoo News.

The sanctions are more and more intense and hurting Russia's economy to the core. The country relies heavily on its military industry and energy production in order to generate revenue.

The EU and the USA specifically target these areas with their sanctions, believing that Russia will be hit on vulnerable spots.

The largest Russian news agency, RIA Novosti quotes Russian lawmaker, Alexei Pushkov who considers the US policy towards Russia is harsher than during the Cold War era.

Russia has vowed to retaliate.

Russia is one of the World's largest commodity producers and exporters. It is highly likely that the Russian response against the West will materialize in some sort of a commodity-related "boycott".

Russia could raise the price of natural gas delivered to Europe, they could influence the price of petrol and fully halt exporting certain commodities to "hostile" countries.

Currently, it is estimated that Russia is the 4th biggest producer of gold and silver, the 2nd in of platinum, the top producer of palladium (more than 40 % global share in 2014), the top producer of oil (13.28 % share in 2014) and the 2nd biggest producer of natural gas.

The West, particularly Europe would be most vulnerable to natural gas, but also to petrol and, palladium.

You should also check the article about palladium's current bull market.

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