Gold Mining Industry of the Magadan Oblast in the Context of Sanctions: Risks for the Region

Abstract

The introduction of another package of sanctions in connection with the start of a military operation in Ukraine especially changes the operating conditions in industries focused on the foreign market, both at the production stage and at the stage of product sale. Such industries include the gold mining industry, which uses high-performance foreign equipment for production and sells gold on the world market. The factors complicating the work of the industry at the current stage and leading to an increase in the cost of production and a decrease in the price of gold sales were considered: the application of sanctions to the largest partner banks of subsoil users, the ban by foreign countries on the purchase of Russian gold and on the import of imported equipment and spare parts, the depreciation of the dollar of the Central Bank of Russia. Using the example of a specific gold mining enterprise in the Magadan Region, an assessment was made of the efficiency of placer gold mining in the conditions that have changed. Federal and regional measures have been proposed to smooth out the severity of problems in the industry and the consequences for the economy of the monoresource northern region.