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Tue Dec 15 23:17:59 2009 [Write for us] | [Login/Register]
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Russia backs away from major gold sale

Moscow -- The Russian government said a news leak had forced it to abandon a plan to sell up to 50 metric tons of gold to shore up its budget deficit.

"Due to the leak of the information the sale in the reported period and in the reported form will not take place," said the government, which had contemplated unloading at least 20 tons and up to 50.

At current prices -- about $1,040 per ounce -- a sale of 50 metric tons would have raises as much as $1.7 billion, The Times of London reported Tuesday.

In September, Russia was fifth in the world in gold production, mining 7 percent of the world's output. Its budget deficit is expected to be about 7.6 percent of gross domestic product in 2009, The Times said.

Copyright 2009 by United Press International.

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