The Russian Finance Ministry announced it will exponentially increase its gold purchases beginning Friday.
According to Russian news agency Interfax, the government will increase its gold purchases from 1.12 billion rubles per day to 8.2 billion rubles per day for the next month.
Russia using oil to get gold
The report states the finance ministry expects a significant oil and gas revenue of 162 billion rubles in September, a huge jump compared to the 10.9 billion rubles generated in August.
With that money, Russia plans to purchase more gold.
As the war in Ukraine rages on, Russia’s central bank has been a net purchaser of gold through the 2024 calendar year, though it has only added about 4 tonnes of the metal to its reserves.
Embracing gold in Russia
In early 2022, just as the war with Ukraine began, Russia married the ruble to gold and created a new gold standard. According to The Conversation, Russia shifted the currency to gold to isolate its economy from transactions requiring American dollars. That effort has been taking place since 2013.
Russia has long been a top producer of gold. Last year, the country produced 321 metric tons, second only to China’s 378 metric tons.
So far, Russian leader Vladimir Putin’s bet is paying off, as gold hovers around $2,500 an ounce, near its all-time high.