The Kremlin Is Urgently Selling Off Its Gold Reserves
- 29.10.2026, 8:12
Ukrainian intelligence has determined the extent of the situation.
Russia is reducing its gold reserves amid a growing budget deficit, falling oil and gas revenues, and significant expenditures on the war against Ukraine. In September 2026, monetary gold reserves fell to their lowest level since late 2019.
This was reported by the Foreign Intelligence Service of Ukraine (SZRU).
According to intelligence data, in September, the Central Bank of the Russian Federation reduced the physical volume of its gold reserves for the tenth consecutive month. Over the course of the month, they decreased by 6.2 metric tons—to 2,260 metric tons. Since December 2025, the reduction has totaled about 62 metric tons, or 2.7%.
At the same time, Russia’s international reserves as of October 9 were estimated at $723.5 billion. This is $45.5 billion, or 5.9%, less than at the beginning of September.
The dollar value of monetary gold also declined in September–October—from $333.5 billion to $301.6 billion. This was influenced by a reduction in physical reserves, as well as changes in market prices and asset revaluation.
Why Russia Is Spending Its Gold Reserves
According to the State Treasury, the Russian government is forced to draw on its reserves due to a growing budget deficit. Oil and gas revenues are declining, while government spending—including on the war against Ukraine—remains high.
To cover the shortfall, the Russian Ministry of Finance sells foreign currency and gold assets from the National Wealth Fund to the Central Bank in exchange for rubles. The Central Bank then conducts corresponding transactions on the domestic market using yuan and gold.
International sanctions have become an additional constraint for Moscow. A significant portion of the Russian Central Bank’s foreign assets has been frozen since 2022, so domestic gold and assets denominated in Chinese yuan remain more accessible for day-to-day operations.
As a result, the total volume of international reserves does not reflect the amount of funds that the Russian authorities can freely dispose of.
What this could lead to
Selling reserves allows Russia to temporarily finance government spending without immediately increasing borrowing or cutting spending. However, gold cannot fully replace regular budget revenues.
The SZRU warns that if the deficit persists and reserves are not replenished, Russia will have to borrow more, raise taxes, or cut budget programs.
Intelligence officials believe that the decline in gold reserves indicates a tightening of financial constraints on the Russian Federation, as the war continues to drain state resources amid falling revenues.