Russians bought a record amount of gold last year as they sought to protect their savings amid sanctions, obtaining the equivalent of about a fourth of the country’s annual output.

Consumers purchased 75.6 metric tons (2.7 million ounces) of the yellow metal in bullion, coins and jewelery in 2024, the fifth biggest figure among all nations, according to World Gold Council data published Wednesday. That’s an increase of 6% on the previous year and more than 60% since President Vladimir Putin ordered his troops into Ukraine almost three years ago.

Russian Consumer Demand for Gold at Record

The metal has become a popular way to protect savings

Russia is the world’s second-biggest gold producer, mining over 300 tons of the precious metal a year. Since the invasion of Ukraine, Russian gold has been shunned in the West, with flows to trading hubs like London and New York drying up. Russia’s central bank, once the biggest gold buyer globally, also hasn’t resumed purchases at significant volumes.

Retail gold demand shifted upward after the Kremlin’s invasion of Ukraine as Russians started to find alternative ways of securing their savings instead of traditional investments in dollars or euros. Western sanctions last year intensified cross-border payment difficulties and led to some foreign currency shortages, while the ruble also fell to historic lows.

To spur gold sales, Russia canceled value-added tax on retail purchases of the metal right after the invasion following more than a decade of discussing such a move.