The Russian Finance Ministry has unveiled plans to invest 51.5 billion rubles (approximately $538 million) annually in strategic metals and gemstones through 2027. This decision, part of a draft federal budget, marks a significant shift in Russia’s economic strategy.

Of particular note is the reintroduction of palladium to the government’s purchasing list. This rare metal, crucial for automotive catalytic converters and electronics, had been absent from state buying programs since 2012 when the country liquidated Soviet-era reserves.

This move may be aimed at diversifying Russia’s state assets amid ongoing international sanctions and global market volatility. By increasing holdings of highly liquid assets like gold, silver, platinum, and now palladium, Moscow appears to be bolstering its financial resilience.

The consistent budget allocation of 51.5 billion rubles annually represents a 32% increase from previously planned spending for 2026-2027, highlighting the government’s commitment to this strategy.

This policy shift comes as global demand for precious metals, especially those used in green technologies, continues to rise. Russia’s actions could potentially impact global markets, given its significant role in precious metals production.

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