MOSCOW (Reuters) – The Russian central bank stated on Thursday that central banks in emerging markets are purchasing gold to diversify their international reserves due to a G7 attempt to utilize billions of dollars in frozen Russian assets.

On track for its largest annual increase since 1979, gold is up 59% so far this year after reaching a record $4,381 per troy ounce on October 20, driven by safe-haven demand fueled by geopolitical tensions and US tariff uncertainty.

The central bank stated that investor interest in gold was increasing due to uncertainty regarding global growth.

“At the same time, the precious metal receives further support thanks to steady demand from central banks of emerging economies, which continue to diversify their international reserves amidst G7 discussions on the use of frozen Russian assets,” the central bank stated.

Of approximately $300 billion in frozen Russian assets, 210 billion euros ($243 billion) are held in Europe, of which 185 billion are in Euroclear, a Brussels-based central securities depository.

Russia’s gold and foreign currency reserves amounted to $734.1 billion as of November 14.

($1 = 0.8630 euros)

(Reporting by Elena Fabrichnaya and Olesya Astakhova, written by Maxim Rodionov; editing by Guy Faulconbridge)