Russia, which has been steadily increasing its gold reserves for two decades, is now forced to sell this precious metal amid a sharp decline in oil and gas export revenues. In the first quarter of 2026, the Central Bank of Russia sold about 21.8 tons of gold from its reserves. As a result, the country’s total gold reserve has decreased to 2,305 tons.
This is reported by Finway
Beginning of mass gold sell-off in Russia
A turning point in the gold accumulation strategy occurred in November 2025, when the Central Bank first began directly selling gold to domestic buyers, including banks, state companies, and investment structures. The funds obtained from these operations are primarily converted into yuan, as Russia has virtually closed access to leading world currencies in external markets.
From 2002 to 2025, Russia acquired over 1,900 tons of gold, mainly from its own gold mining enterprises. The most active phases of accumulation occurred during the periods of 2008–2012 and 2014–2019, when over 1,700 tons were added to the reserves. After 2020, the pace of purchases sharply declined, and since the end of 2025, the trend has definitively reversed.
Gold becomes an operational financial instrument
The domestic market has already reacted to the change in the Central Bank’s strategy. In March, the volume of domestic gold transactions in Russia reached 42.6 tons, which is 3.5 times more than in the same period of the previous year. A significant portion of the operations consists of swap agreements, where gold is used as collateral for short-term liquidity. Thus, the precious metal has transformed from a reserve asset into an operational financial resource for emergency budget deficit coverage.
“For twenty years, Russia accumulated gold. Now it sells. In the first quarter of 2026, the Central Bank of Russia sold about 21.8 tons from its reserves, resulting in the country’s gold stock reducing to 2,305 tons. For a budget with a gaping hole of nearly $62 billion, the precious metal has become the last rescue tool – and the Kremlin does not hesitate to use it,” noted the SBU.
According to estimates from Ukrainian intelligence, the main reason for this move is the deep crisis in the Russian budget: at the beginning of 2026, oil and gas revenues sharply fell, while expenditures on military and social programs remain high. Opportunities for external financing for Russia are virtually non-existent, and domestic debt is constantly rising.
At the current pace of sales – about seven tons of gold per month – Russia could sell between 80 and 90 tons of the precious metal throughout 2026. This indicates not an immediate catastrophe, but serious financial difficulties for a country that has long showcased reserve accumulation as a symbol of economic stability. Now, these reserves are gradually being depleted, indicating a loss of the financial stability of the system.
At the same time, there is a mass exodus of small businesses into the shadows in Russia, further intensifying the pressure on state finances.