Russia transfers US$1 billion in gold from finance ministry to Central Bank

Russia transfers US$1 billion in gold from finance ministry to Central Bank: "Russia-Gold Sale


MOSCOW (AP) - An official, who declined to be identified because he was unauthorized to comment on the deal, says Russia's Finance Ministry has sold 30 metric tons of gold to the country's Central Bank for US$1 billion, adding that the cash will be used to help ease the crisis in the country's budget.
The cash slightly reduces Russia's deficit - reportedly around 7.3 percent of gross domestic product this year. The Central Bank is the only government body mandated to engage in foreign commodity and currency trade.
The deal marks the first large sale of gold from Russian coffers since the collapse of the Soviet Union. Russia is weathering its worst financial crisis in a decade.
Russia's finance minister said in October that Moscow was considering a gold sale on world markets to cash in on high prices as the government faces its first budget deficit in a decade. 211514 dec 09GMT"