Russia’s central bank will start buying gold after a two-year hiatus as the country’s domestic producers face problems accessing international bullion markets.
The Bank of Russia said in a statement it would “resume the purchase of gold on the domestic precious metals market”.
The move comes after the central bank and several of the country’s biggest lenders were hit by sanctions in response to Russia’s invasion of Ukraine.
Analysts have warned that Russian producers such as Polymetal or Polyus will probably find it difficult to sell gold in London or New York.
As such, these companies were expected to turn to the Russian central bank, which can provide the roubles they need to pay staff and supplies in exchange for gold.
The Bank of Russia owned just under 2,300 tonnes of gold at the end of November, according to the World Gold Council.
At current prices, its hoard of metal — the sixth largest in the world — is worth $153bn and accounts for roughly a fifth of the bank’s official reserves.
Following the annexation of Crimea in 2014, the central bank stepped up its…
