Russia Increases Daily Gold Purchases by 700% Amid Rising Oil Revenues

Anisha Mehra

North News
Chandigarh, September 7

Russia has significantly ramped up its gold and foreign currency purchases, boosting daily spending by 700% to 8.2 billion rubles ($92 million) between September 6 and October 4, 2024, according to the country’s Finance Ministry. The new spending target follows a surge in “windfall” oil and gas revenues, with Russia expecting 162 billion rubles in September. The Ministry’s previous daily spending on gold and foreign currency was 1.12 billion rubles from August 7 to September 5, indicating a sharp increase in financial activity as Russia looks to bolster its National Wealth Fund.

The decision comes as Russia continues to navigate international sanctions and fluctuating oil prices, leveraging its remaining foreign assets, notably the Chinese yuan, for economic stabilization. After a prolonged pause in foreign exchange interventions post-Ukraine invasion, Russia resumed these purchases in January 2023. With oil and gas accounting for about one-third of its budget revenues, Moscow appears poised to capitalize on its energy sector to reinforce its financial reserves, the news outlet The Kitco News reported.