Russia's Central Bank Sells 43.5 Tons of Gold as Budget Deficit Nears 6 Trillion Rubles
Updated
Updated · UNITED24 Media · Jul 21
Russia's Central Bank Sells 43.5 Tons of Gold as Budget Deficit Nears 6 Trillion Rubles
3 articles · Updated · UNITED24 Media · Jul 21
Summary
43.5 metric tons of gold have been sold by Russia's central bank since January, marking its biggest first-half drawdown in at least 25 years and extending reserve declines to a sixth straight month.
June alone accounted for 300,000 troy ounces, or about 9.33 tons, leaving holdings at 2,283 tons on July 1—the lowest level since February 2020.
About $5.6 billion may have been raised as the federal budget deficit approached 6 trillion rubles in the first half, with weaker oil and gas revenues pressuring state finances.
Analyst Vladimir Chernov said the bank's sales mirror Finance Ministry operations tied to the National Wealth Fund, making the central bank the technical executor rather than the independent driver.
Gold has become especially useful because it is stored inside Russia and foreign-currency assets remain partly inaccessible after being frozen abroad.
With its wealth fund and gold reserves dwindling, what is Russia's next move to fund its wartime economy?
Russia's top gold miner just axed its dividends. Are other corporate giants next on the chopping block?
Could new US tariffs on Russia's energy buyers be the final blow to its struggling war economy?
Russia’s Gold Reserves Depleted: How War, Sanctions, and Soaring Deficits Are Forcing a Historic Liquidation in 2026
Overview
In 2026, Russia faces a deepening budget crisis as military spending soars and oil and gas revenues plunge by 45%. To cover the widening deficit, the government has been drawing heavily on its National Wealth Fund since 2022, rapidly depleting its liquid assets from 6.5% to just 1.8% of GDP by April 2026. This urgent need for funds has forced Russia to sell off its gold reserves, reversing years of accumulation. The combination of high war costs, shrinking export income, and dwindling reserves highlights the growing risks to Russia’s financial stability and the unsustainability of its current strategy.