Vladimir Putin’s Russia has faced a barrage of sanctions from around the world as it has waged its war in Ukraine. But its economy has been able to fall back on one key pillar of support: gold.

Russia’s central bank switched from being a net seller of gold to a net buyer in 2006 and has amassed one of the largest stockpiles in the world. The gold reserves are part of Putin’s plan to construct a “fortress Russia” economy impervious to sanctions.

Putin’s ploy has paid off handsomely in recent weeks after a surge in the price of bullion. Gold surged past $US4000 an ounce for the first time on Wednesday, taking its gains so far this year over 50 per cent. The rally values Russia’s 2326.5-tonne hoard at just over $US302 billion ($454 billion).

The most recent rally has been driven by concern

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