January was a month of record prices on the gold market. The average price of the bullion last month was approximately PLN 4.7 thousand. hole. per ounce. This means, as Bloomberg calculates, that Russia could obtain up to $1.4 billion this way. This, of course, assumes that all transactions were completed at the market price.
The rest of the article below the video:
The sale of gold by the central bank is part of broader activities of the Russian Ministry of Finance, which since last year has been running the so-called mirror operations. They involve the disposal of National Welfare Fund assets, including gold and foreign currencies, in order to mitigate the effects of falling revenues from oil and gas exports.
Also reads: Only a small part of NBP gold is found in Poland. See where most of the bullion is
Despite the sale, the value of Russia's gold reserves increased by 23% in January, reaching $402.7 billion. This growth was fueled by rising bullion prices, which have brought unexpected financial benefits to Russia since the invasion of Ukraine in 2022. As analysts point out, the profits from rising gold prices may equal the value of frozen Russian currency assets in Europe.
Read also: Gold is entering alarm mode. The geopolitical bomb is ticking
The decision to sell gold during a period of record prices shows how important a tool gold reserves have become for the Russian economy in the face of international sanctions and restrictions on access to financial markets.
Growing deficit and bleak forecasts for the Russian economy
The Russian Ministry of Finance predicts that the budget deficit this year will reach 5.7 trillion rubles (approx. USD 63 billion), although it was originally assumed to be only 1.2 trillion rubles. Analysts additionally estimate that lower prices of Russian oil may reduce export revenues by another $35 billion.
In practice, this means not only slower economic growth, but also the risk of further cuts in public spending. Voices are increasingly heard that without the sale of further reserves, Russia may have serious problems with financing its liabilities in the coming years.
