Lucrezia Ciotti Russia is selling its gold reserves to finance the state budget and support the war in Ukraine . The sales have continued for ten consecutive months, while the public deficit rises and energy revenues decline.
Oil and gas revenues are not enough: the Kremlin is tapping into state assets
Since the late 1990s, Moscow had increased its gold holdings more than fivefold, reaching around 2.300 tonnes by early 2022, one of the largest reserves in the world.
Now, however, the use of these resources has become a tool to offset the deficit. Finam analyst Alexander Potavin explained that the Ministry of Finance uses accumulated reserves , including gold, to cover deficits when revenues are insufficient . High international prices for the precious metal also contribute to the sales , allowing for greater resources to be obtained from its liquidation.
The budget difficulties are part of a broader picture, marked by defense spending and uncertainties surrounding energy revenues. According to Reuters , Russian oil and gas revenues are expected to fall below annual targets, while the 2026 deficit has been revised upward to 3,2% of GDP.
To raise liquidity, the government is therefore relying more heavily on the National Wealth Fund and on sales of public assets.
War in Ukraine: Putin's Financing Strategy: "Gold for Sale"
Russia continues to use its reserves to address fiscal difficulties , exacerbated by military spending and declining energy revenues. According to a report by the Moscow Times on October 20, 2026, the Central Bank of Russia has sold gold for ten consecutive months , drawing on part of the state's accumulated assets to support the federal budget. The projected deficit for this year is 7.300 trillion rubles , approximately $81,1 billion, double the initial estimates.
Data released by the central bank show that, in September, reserves fell by 200 troy ounces, equivalent to approximately 6,2 tonnes of gold. The total amount thus reached 72,8 million ounces, the lowest level since the end of 2019. Starting in December 2025, the reduction reached approximately 2 million ounces, equal to 62 tonnes.
The most significant historical precedent dates back to the 1998 financial crisis , when Russia defaulted on its domestic debt and the ruble suffered a sharp collapse. According to International Monetary Fund data cited by the Moscow Times , in just three months the Central Bank sold 3,8 million ounces, approximately 118 tons . Subsequently, some of the gold was bought back , and the net decline recorded for the entire year stopped at 1,6 million ounces, approximately 50 tons: a smaller amount than that sold in the current phase of divestment.