Russia's Central Bank Links Gold Demand to G7 Efforts Over Frozen Assets

Russia’s Central Bank on Gold Demand

Russia’s central bank stated that central banks in emerging economies have been increasing their gold purchases to diversify reserves amid geopolitical tensions. According to the bank, this growing demand is partly a reaction to the Group of Seven (G7) nations’ move to access or profit from Russia’s frozen assets abroad.

Reducing Reliance on Western Currencies

The statement emphasized that gold serves as a safer and more politically neutral store of value compared with reserves held in Western currencies such as the US dollar and euro. By purchasing gold, countries aim to protect themselves from potential sanctions or other restrictions linked to Western financial systems.

Frozen Assets and Global Reaction

Following sanctions imposed after Russia's involvement in Ukraine, approximately 300 billion dollars’ worth of Russian state assets remain frozen across Western institutions. The G7 nations have been discussing potential methods to use the profits generated by these assets to provide financial aid to Ukraine.

Broader Implications for Global Finance

Russia’s central bank argued that this situation is prompting many emerging markets to reconsider how they manage and secure their reserves. The trend suggests a gradual shift toward gold and other non-Western assets as part of a broader strategy to reduce vulnerability to external political pressures.

“The attempt to take advantage of Russia’s frozen assets demonstrates to many countries the risks associated with holding reserves in Western jurisdictions,” the statement concluded.

Author’s summary: Russia’s central bank says emerging economies now favor gold to protect reserves, viewing G7 moves to exploit Moscow’s frozen assets as proof of Western financial risk.

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Reuters on MSN Reuters on MSN — 2025-11-27

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