Western sanctions have led to increased demand for safe-haven assets in the country
Russian gold miners boosted output by 26.5% year-on-year in March, according to the latest data from the Federal State Statistics Service (Rosstat).
Compared to February, gold production jumped by more than 30%. The first quarter figure was 9.1% higher than in the same period of last year.
Meanwhile, the production of the key metals silver, platinum, and palladium in Russia rose by 14.1% in March in annual terms, Rosstat data showed.
The country’s bullion stockpile has also continued to grow over the past year, according to the Bank of Russia. Gold reserves jumped by 1 million ounces over the last year to 74.9 million ounces as of March 1, the CBR reported last month.
Demand for gold has been growing among the population as well, with Russians having bought more than 75 tons of investment gold bullion in 2022, according to the Finance Ministry.
READ MORE: Russia lifts veil on gold holdings
Last March, the Russian government scrapped the 20% value-added tax on gold for individuals as people rushed to park their savings amid the sweeping Western sanctions. Several months later, the 13% income tax on profits from the sale of gold bars was rescinded as well. Since then, demand for the precious metal in the country has skyrocketed.
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