The Russian Central Bank has announced that it is suspending gold purchases from banks so that they can meet the population's demand for the metal.
"In order to create conditions to meet the population's demand, the Bank of Russia is suspending the purchase of gold from credit institutions from 15 March 2022," the Bank of Russia said in a statement.
"Currently, the demand of the population for the purchase of physical gold bars has increased, due in particular to the abolition of VAT on such transactions," the institution noted. The Central Bank of Russia resumed buying gold on the domestic precious metals market on 28 February 2022, almost two years after such transactions were suspended following the entry of Russian forces into Ukraine.
The abolition of VAT on gold purchases by individuals was then introduced, in the wake of the fall of the rouble due to Western-imposed sanctions.
This measure is intended to prevent the population from buying foreign currency, which, en masse, further weakens the national currency. Major restrictions have been introduced on the purchase, withdrawal and exit of foreign currency. The rouble has lost 40% of its value since the beginning of the military intervention.
Part of the Russian Central Bank's foreign currency reserves abroad have been frozen by the West, limiting its ability to act.

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Photo Credits: Le Figaro