Russia sells gold to overcome Budget deficit…
As income from oil and gas earnings declined in January, Russia made the first-ever decision of its type to sell some of its gold to close the budget gap.
The country’s Finance Ministry said earlier this week that Russia’s budget deficit increased to 1.76 trillion rubles (USD $25 billion).
The January deficit was the highest it has been in 25 years.
This was impacted by a 46% decrease in oil and gas tax revenue from the prior year.
Spending increased 59% as a result of the conflict in Ukraine.
Lower oil and gas income are a result of Western sanctions against Russian exports.
These include the G-7 price cap and a restriction on the majority of crude and refined gasoline imports by sea by the European Union.