Source: Russian banks 2018 gold purchases fall 4.5% to 196 tns

MOSCOW, Jan 22 (PRIME) -- Gold purchases by Russian banks fell 4.5% to 195.85 tonnes in 2018, which accounted for 69% of all produced gold, a source in the Finance Ministry told PRIME on Tuesday.

“Besides, domestic banks signed sales contracts for gold for the same amount, 195.89 tonnes, in 2016. VTB, Gazprombank, Sberbank and Otkritie Financial Corporation (FC) Bank were still the leaders,” the source said.

“This is a good business for banks. They give loans to the users of natural resources, who then pay with the gold they produce, which they mostly sell to the central bank.”

The central bank bought 274 tonnes of gold to replenish reserves in 2018, and its reserves grew to 2,112 tonnes.

VTB was ranked first with gold purchases of 61.28 tonnes, Gazprombank followed with 44.14 tonnes, Sberbank with 34.78 tonnes, Otkritie FC Bank with 20.86 tonnes and Asian-Pacific Bank with 8.02 tonnes.

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