Sanctioned Russian bank VTB sees strong demand for gold bars
(Reuters) – Russia’s second-largest lender VTB, hit by Western sanctions over Moscow’s actions in Ukraine, has offered one tonne of gold to clients this month and expects demand to extend, the state-controlled financial institution mentioned on Wednesday.
Russia scrapped a 20% value-added tax on gold shopping for for people on March 1 as folks rushed to park their financial savings when the rouble sank to report lows. The forex has been hit by sweeping Western sanctions on Russia in response to what Moscow calls its “particular army operation” in Ukraine.
State-run VTB mentioned it had obtained over 200 orders because it began promoting gold bars at first of the month. It mentioned clients most regularly purchased one kilogramme bars.
In a scenario of “elevated uncertainty,” gold permits traders to diversify their portfolios, safe their financial savings and shield them for future generations, VTB senior vice chairman Dmitriy Breytenbikher mentioned in a press release.
Purchases of treasured metals by Russian households must also cut back the amount of money flooding the financial system, analysts have mentioned.
Gold costs hovered close to $1,933.7 an oz. on Wednesday, not removed from 2020’s all-time peak of $2,072.50 and up from round $1,800 at first of the yr.
From Monday, Russia’s central financial institution restarted shopping for gold from banks at a hard and fast value of 5,000 roubles ($59.35) per gramme after briefly suspending purchases from banks in mid-March to fulfill elevated demand for the metallic from households.
($1 = 84.2500 roubles)
(Reporting by Reuters; Enhancing by Mark Potter)
