Putin's "gold Cushion" Has Shrunk To A Six-year Low

• 21.08.2026, 10:56

At one time, the Bank of Russia was one of the world's largest buyers of gold.

Russia's gold reserves continue to decline amid growing pressure on the budget. As of August 1, the Bank of Russia’s reserves had fallen to 73.2 million troy ounces—the lowest level since January 2020, according to Bloomberg (translation by Charter97.org).

Since the beginning of 2026, the volume of gold in reserves has decreased by approximately 1.6 million ounces. At the same time, the monetary value of the reserves fell by $33.7 billion over the first seven months of the year.

Just a few years ago, Russia was actively building up its gold reserves. The Bank of Russia was one of the world’s largest sovereign buyers of the precious metal, but large-scale purchases ceased in early 2020. In 2022, the regulator allowed purchases to resume in order to support the domestic market amid sanctions and changes in global trade, but the volume of purchases never returned to previous levels.

The decline in reserves has become particularly noticeable since last year. The Ministry of Finance began selling gold and foreign currency from the National Wealth Fund, using these funds to cover the budget deficit. One of the reasons for the deterioration of the situation was weaker revenue from energy exports.

At the same time, the Bank of Russia is conducting operations in the domestic market as part of the so-called mirror mechanism. These transactions are intended to mitigate the impact of the Ministry of Finance’s operations on the ruble exchange rate and the financial system.

Gold reserves, which Moscow has long regarded as a crucial financial safety net, continue to decline. Against the backdrop of budget problems and declining energy revenues, the authorities are having to draw more heavily on accumulated reserves to shore up public finances.