OREANDA-NEWS. The Bank of Russia has suspended the purchase of gold from credit institutions.

It is noted that the demand for the purchase of gold bullion has increased among the population, in particular, due to the abolition of VAT on such transactions.

“In order to create conditions to meet the demand of the population, the Bank of Russia suspends the purchase of gold from credit institutions from March 15, 2022,” the publication on the Central Bank’s website says.

In early March, Russia abolished the value added tax on the purchase of precious metals in bullion. The government said that metals would be able to push out dollars and euros against the backdrop of sanctions, and Russians would begin to invest more actively in these assets.

The government hopes that metals will be able to push out dollars and euros against the backdrop of sanctions, and Russians will begin to invest more actively in these assets.

“According to experts, the potential demand from citizens for precious metals in bullion is up to 50 tons per year (15% of production),” the explanatory note says.

The tax was originally introduced to prevent bullion from being used as a raw material for jewelry production. When it was sold back to the seller, it was not returned.

Banks sell bars weighing from 1 gram to 1 kilogram. The rate may vary depending on the credit institution. Upon purchase, the investor receives an act indicating the metal, sample, weight, ingot number, price, date, full name of the buyer and representative of the organization, and a manufacturer's certificate.