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. Last Updated: 07/27/2016

Gokhran to Buy 20% More Gold

Russia's state precious metals and gems reserve, Gokhran, will increase its gold purchases in 2001 by 20 percent from more than 20 tons in 2000, Gokhran head Valery Rudakov said Thursday.

"We'll hope to buy 20 percent more. We buy only on the free market, and it depends on metal available outside contracts," Rudakov said.

Rudakov also said Russia intended to increase its own gold production by 10 percent this year. Last year the country produced an estimated 145 tons of gold.

Gokhran can buy gold only on the free market because Russian banks prefinance gold production, and gold producers repay the loans in gold.

This means the bulk of production is tied up in contracts and therefore not available to Gokhran.

Rudakov said Gokhran had already begun buying this year's increased amount of gold.

The head of the Gold Industrialists' Union, Valery Braiko, said at the end of last year that Russia would produce around 146 tons of gold in 2001, about the same as it did in 2000.