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☆ First on CNN: Defense bill takes aim at Russia’s pot of gold
▼ + stars: | 2022-12-08 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

New York CNN Business —A must-pass defense bill now being negotiated in Congress includes new sanctions designed to trip up Russia’s war machine by targeting Moscow’s mountain of gold. If passed, the defense bill would directly sanction any American entities that knowingly transact with or transport gold from Russia’s central bank holdings. As of mid-2021, Russia’s central bank held $127 billion worth of gold, according to the Central Bank of Russia. The gold is stored at vaults within the territory of the Russian Federation, the Russian central bank has said. In June, President Joe Biden announced the United States and the rest of the G7 would impose a ban on imports of Russian gold.

☆ Russian central bank raises over 3 trillion roubles at one-week deposit auction
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: 1 min

MOSCOW, Dec 6 (Reuters) - Russia's central bank on Tuesday said it had raised a total of 3.06 trillion roubles ($48.65 billion) at a one-week deposit auction. The Bank of Russia conducts weekly deposit auctions to manage aggregate liquidity and temporarily absorb excessive funds from credit institutions under a structural liquidity surplus. Government debt and liquidity auctions have seen record volumes of late. ($1 = 62.9000 roubles)Reporting by ReutersOur Standards: The Thomson Reuters Trust Principles.

☆ Gold prices inch higher on softer dollar
▼ + stars: | 2022-12-05 | by ( ) www.cnbc.com time to read: +1 min

One kilo gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. Gold prices edged up on Monday and hovered near the key $1,800-level, as a softer U.S. dollar made the greenback-priced bullion cheaper for buyers holding other currencies. Spot gold rose 0.1% to $1,800.02 per ounce as of 0027 GMT. Lower interest rates tend to be beneficial for gold as it reduces the opportunity cost of holding the non-yielding asset. Physical gold demand stalled in India last week on higher prices, while premiums fell in top consumer China as Covid-19 restrictions dulled activity.

☆ Gold hits 5-month peak as dollar dips on China reopening hopes
▼ + stars: | 2022-12-05 | by ( Ashitha Shivaprasad | ) www.reuters.com time to read: +2 min

SummarySummary Companies Dollar index down 0.2%, hovers near 5-month lowLondon body creates database of Russian gold barsDec 5 (Reuters) - Gold prices rose to a five-month high on Monday, as the U.S. dollar weakened slightly after more Chinese cities relaxed COVID-19 restrictions over the weekend. The dollar index was down 0.2%, hovering near five-month lows. Lower interest rates tend to be beneficial for gold as it reduces the opportunity cost of holding the non-yielding asset. "Also, news that China is scaling back its COVID restrictions means that gold demand will increase in the region, further supporting prices," said Simpson. The London Bullion Market Association is creating a database of Russian gold bars held by banks in London to help prevent sanctions evasion by Russian companies or the Russian central bank, the industry group said on Friday.

☆ China's yuan now accounts for nearly half of Moscow's currency market as Russian central bank calls for balanced transition to the redback
▼ + stars: | 2022-12-01 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

The yuan's share of the Russian currency market is now 40%-45% vs. less than 1% at the start of the year, according to the Moscow Exchange. Russia's central bank is pushing for a balanced transition to the yuan that includes imports, exports and capital transactions. The yuan's share of the currency market is now 40%-45%, up from less than 1% at the start of the year, the Moscow Exchange told Reuters. Russian companies like Rosneft and Polyus have raised considerable amounts of yuan in the Chinese bond market this year. "It is also important that the transition to the yuan is balanced, addressing both exports and imports, as well as payments for capital transactions," the central bank said in a financial stability report.

☆ Russia sees drop in cross-border payments using dollars, euros
▼ + stars: | 2022-12-01 | by ( ) www.reuters.com time to read: +2 min

[1/2] Cars are parked in front of Russia's Central Bank headquarters in Moscow, Russia March 29, 2021. Russia is seeking to reduce transactions with what it terms "toxic" currencies - those of countries that have imposed sanctions on Russia, in particular the dollar and euro. Use of China's yuan by Russian companies increased dramatically since Feb. 24, when Russia sent thousands of troops into Ukraine. Russians have bought 139.6 billion roubles ($2.28 billion)worth of Chinese yuan so far this year, the central bank estimated. "The challenge for Russian banks is the limited scope of opportunities in interest-bearing yuan investments," it said.

☆ EU Says It Can’t Seize Frozen Russian Central-Bank Assets for Ukraine
▼ + stars: | 2022-11-30 | by ( Laurence Norman | ) www.wsj.com time to read: 1 min

Almost half of the Russian central bank’s total reserves was frozen by the West in the first days of the Ukraine war. BERLIN—European Union officials said the bloc can’t confiscate tens of billions of euros-worth of frozen Russian central-bank funds to pay for Ukraine’s reconstruction, while its executive body sent proposals to member states on setting up an international court to prosecute Russian officials for this year’s invasion. Pressure had been building up for months from some member states for Brussels to come up with ways to seize Russian assets and hold top Russian leaders accountable for the war.

☆ Brussels proposes plan to confiscate frozen Russian assets
▼ + stars: | 2022-11-30 | by ( John Chalmers | ) www.reuters.com time to read: +2 min

BRUSSELS, Nov 30 (Reuters) - The European Commission on Wednesday proposed confiscating Russian assets that have been frozen to punish Moscow for the invasion of Ukraine, exploring legal options with the EU's partners to compensate Kyiv for damage to the country. Officials in the European Union, the United States and other Western countries have debated for months how to legally seize Russian assets held abroad - both state and private - that are frozen by sanctions. The problem is that in most EU member states, seizing frozen assets is only legally possible where there is a criminal conviction. Also, many assets of blacklisted Russian citizens are difficult to seize or even freeze because they are registered as belonging to family members or front people. Russia says the freezing of its central bank's reserves and the assets of its citizens are illegal.

[1/2] Chinese Yuan and U.S. dollar banknotes are seen behind illuminated stock graph in this illustration taken February 10, 2020. His contract manufacturing business with Russia has been small in the past, but now he's preparing to invest in warehousing there. He sees a win-win situation in Chinese exporters reducing their currency risks and payment becoming more convenient for Russian buyers. The U.S. Treasury declined to comment on the yuan's growing presence in Russia. ($1 = 7.2074 Chinese yuan renminbi)Editing by Vidya Ranganathan and Pravin CharOur Standards: The Thomson Reuters Trust Principles.

☆ Russia's economy has finally fallen into recession, 8 months after it invaded Ukraine
▼ + stars: | 2022-11-17 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Russia's GDP fell 4% on-year in the third quarter of 2022 — its second straight quarterly decline. This followed a 4.1% year-on-year decline in its second-quarter GDP — meaning the country has fallen into a technical recession after two straight quarterly contractions. Nabiullina's assessment of the economy followed months of intensifying sanctions against Russia over its invasion of Ukraine. And while firm energy prices had propped up Russia's economy for a while, the tide seems to be turning — in part, due to President Vladimir Putin's partial mobilization order that sent many fleeing the draft. Russia's central bank expects the country's economy to contract by 3% to 3.5% in 2022, Nabiullina said on Tuesday, according to an official transcript.

☆ Russia's top central banker warns of higher inflation as Putin's military draft tightens the labor market
▼ + stars: | 2022-11-01 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Russia's top central banker Nabiullina has now warned of higher inflation, thanks to Putin's military draft. She said the draft could lead to structural changes in the labor market, leading to higher labor costs. The Russian central bank expects the country's inflation rate to hit 12% to 13% in 2022. Putin's partial mobilization order has wreaked havoc among Russians and sent many fleeing the draft. Despite the negative fallout from Putin's draft, Nabiullina hedged her bleak outlook on the economy and said the economy "has been adapting to the external restrictions more quickly," in part, due to record-high farm harvests this year.

☆ Putin admits Russia is facing 'issues' in the Ukraine war and told his team to make faster decisions
▼ + stars: | 2022-10-26 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Russian President Putin on Tuesday admitted his country faces "issues" from the war in Ukraine. Putin also told his team to speed up the decision-making process in the conflict. While the Kremlin wrote that Putin used the phrase "economic restrictions," the AFP reported that Putin said Russia was facing "economic difficulties" due to sanctions over the war. Putin's partial mobilization of the country's 300,000 military reservists in September created new challenges for production processes and output maintenance, according to a Russian central bank report released last week. The exercise is also expected to "negatively affect consumer and business confidence," the central bank said.

Since then, the central bank has cut rates six times, most recently to 7.5% last month. Register now for FREE unlimited access to Reuters.com RegisterTwenty-two of 26 analysts and economists polled by Reuters on Monday predicted that Russia would keep its benchmark rate unchanged (RUCBIR=ECI) on Friday. President Vladimir Putin's partial mobilisation order and subsequent declaration of martial law in four partly-occupied regions of Ukraine that Russia says it owns have exacerbated geopolitical risks. Economic activity slowed significantly at the end of September, the central bank said this month. "Stimulating growth of retailer and corporate lending by lowering the rate is currently pointless, in my view."

☆ Enlisted Russian Raiffeisen Bank employee killed in Ukraine conflict - lawyer
▼ + stars: | 2022-10-21 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies This content was produced in Russia, where the law restricts coverage of Russian military operations in UkraineMOSCOW, Oct 21 (Reuters) - A Russian employee of Austria's Raiffeisen Bank International (RBI) (RBIV.VI) was killed after being mobilised to fight against Ukraine, despite his bank writing to the draft office seeking an exemption, his lawyer told Reuters on Friday. Izmailov had gone to his recruitment office on Sept. 23 intending to explain that he was entitled to deferment. Raiffeisen in Russia declined to comment and its head office in Austria, as well as the Russian Defence Ministry, did not immediately respond to inquiries. Raiffeisen has operated in Russia since the collapse of the Soviet Union 30 years ago and its business there - which is Russia's No. 10 bank by assets - contributed almost a third to group net profit of 1.5 billion euros ($1.5 billion) last year.

☆ Putin called an additional 300,000 men into the military a month ago, and it's taking a toll on the economy
▼ + stars: | 2022-10-21 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Putin's mobilization of men for the Ukraine war could hit the economy, the Russian central bank said. More than 300,000 Russian men and their families have fled the country since the mobilization order. "The recovery of economic activity stalled in September," the research department of the Central Bank of Russia said in a report on Wednesday. Russia's central bank did not reference those escaping from the call-up, but said the mobilization has created new challenges for production processes and output maintenance. "September's events will not necessarily push Russia into an immediate recession, but challenges are mounting," Morning Consult analysts said.

☆ 3 ways China and Russia are forging much closer economic ties
▼ + stars: | 2022-09-15 | by ( Laura He | Cnn Business | ) edition.cnn.com time to read: +10 min

Beijing has carefully avoided violating Western sanctions or providing direct military support to Moscow. For the first eight months of this year, total goods trade between China and Russia surged 31% to $117.2 billion. "Russia needs China more than China needs Russia," said Keith Krach, former Under Secretary of State for Economic growth, Energy and the Environment in the United States. For China, Russia now accounts for 2.8% of its total trade volume, slightly higher than the 2.5% share at the end of last year. "Russia's war in Ukraine is not in China's interest, but given Western hostility, China will not oppose Russia," she added.

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