Russia Halts Gold and Currency Sales as Oil Prices Plummet Below $40
Russia's Finance Ministry will pause foreign currency and gold transactions in March. The move follows a sharp drop in oil prices, forcing a review of the base oil price parameter. This cutoff price plays a key role in budget planning and state reserve management.
The current base price sits at $59 per barrel. But by late January 2026, Urals crude traded at just $36–38, far below global Brent prices of around $83. Western sanctions have created a discount of roughly $26.50 per barrel for Russian oil.
Between February 6 and March 5, the ministry sold 226.8 billion rubles in currency to cover shortfalls. The low prices have drained revenues, prompting Finance Minister Anton Siluanov to signal an upcoming change. A revised fiscal rule and new cutoff price are expected soon.
Operations will restart once deferred purchase and sale volumes are recalculated. The adjustments may include retroactive transactions for March 2026. A lower cutoff price could also extend the liquidity cushion and help refill the National Wealth Fund if oil prices recover or the Urals discount shrinks.
The suspension highlights the strain on Russia's budget from prolonged low oil prices. Once the new parameters are set, currency operations will resume with updated volumes. The changes aim to stabilise state finances amid ongoing market volatility.
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