Bank of Russia will buy gold from banks at a fixed price from March 28

TASS Russian News Agency | Mar 25, 2022 at 5:41 PM

MOSCOW, March 25. /TASS/. From March 28, the Bank of Russia will buy gold from banks at a fixed price of 5,000 rubles ($49.2) per 1 gram, the press service of the regulator said.

"The Bank of Russia, in order to balance supply and demand in the domestic market of precious metals, from March 28, 2022, will buy gold from credit institutions at a fixed price. The price from March 28 to June 30, 2022 inclusive will be 5,000 rubles per 1 gram," the regulator said.

According to the regulator, the established price level allows for a stable supply of gold and the smooth functioning of the gold mining industry this year.

"After the specified period, the purchase price of gold can be adjusted taking into account the emerging balance of supply and demand in the domestic market," the Bank of Russia said.

From March 15, 2022, the Bank of Russia suspended the purchase of gold from banks amid high demand from the population for the purchase of physical gold bullion. Demand, according to the regulator, was due to the abolition of VAT on these transactions.

Russian President Vladimir Putin signed the bill exempting transactions on sale of precious metals in bullions by lenders to individuals with taking out from vaults from value-added tax (VAT) into law on March 9. In its turn, the Russian Finance Ministry has offered allowing citizens to buy investment gold in bullions for foreign cash.