Russia’s central bank has sold 700,000 troy ounces of gold so far in 2026, marking a significant change in how the country manages its reserves as fiscal pressures intensify. According to central bank data, Russia’s gold reserves fell to 74.1 million troy ounces at the start of April, down from 74.8 million ounces at the beginning of the year. The sales included 300,000 ounces in January and 200,000 ounces in February, with further disposals in March bringing the year-to-date total to 700,000 ounces.
The move is particularly notable because it represents the first sale of physical gold from Russia’s central bank reserves in 25 years. In the past, gold-related transactions were generally internal transfers between the finance ministry and the central bank, with the bullion itself remaining in official vaults. This time, the Bank of Russia has been selling physical gold bars directly into the market.
The central bank began these operations in November 2025 on behalf of the National Wealth Fund, Russia’s sovereign fiscal reserve. At the time, officials said the sharp rise in gold prices had increased the share of gold within Russia’s reserves, making diversification necessary. The bank also said it was taking advantage of higher liquidity in the domestic market.
However, the decision also comes at a time when Russia is facing increasing budget strain. Sustained military spending, combined with weaker oil revenues and tighter sanctions, has forced the government to rely more heavily on reserve assets to support public finances. Although the physical volume of Russia’s gold reserves has declined, the value of those holdings has remained elevated due to rising gold prices. The central bank valued its gold reserves at $334 billion at the start of April, down from $384 billion a month earlier but still above the $325 billion recorded on January 1.
Gold prices surged above $5,000 per ounce earlier this year, lifting the value of reserve holdings worldwide. That rally was driven in part by heavy central bank buying. However, prices later suffered their steepest monthly drop since October 2008 amid inflation worries and expectations of higher interest rates linked to the war in Iran.
Russia’s sales contrast with the continued gold purchases by central banks in countries such as China and Brazil this year. While many central banks have been adding bullion to strengthen reserves and diversify away from traditional currencies, Russia has instead turned to selling gold to raise liquidity.
This reflects the country’s unique financial position under sanctions. Because the Russian central bank can no longer transact freely in dollars or euros, gold and the Chinese yuan have become its most liquid reserve assets. That makes gold not only a strategic reserve but also one of the few assets that can be readily mobilized.
The gold sales come as Russia’s fiscal position faces increasing pressure. Reports citing regulatory data indicate that between 2022 and 2025, Russia sold more than RUB 15 trillion, or about $150 billion, in gold and foreign currency reserves. In the first two months of 2026 alone, a further RUB 3.5 trillion, or roughly $35 billion, was reportedly sold. Russia officially ended 2025 with a budget deficit of 2.6% of GDP, far above the initial forecast of 0.5%. Some economists believe the real deficit may have been closer to 3.4%, as some government payments due in December were pushed into 2026. Fiscal pressure has also increased because falling oil prices in the second half of 2025 and tighter U.S. sanctions reduced the contribution of oil and gas tax revenues to around 20% of total revenues, roughly half of their pre-war level.
Even after the recent sales, Russia remains one of the world’s largest sovereign gold holders. According to the World Gold Council, the country still holds more than 2,000 tonnes of gold, making it the fifth-largest official holder globally. Russia spent years building up those reserves as part of a strategy to reduce dependence on dollar-denominated assets, particularly after sanctions were imposed following the annexation of Crimea in 2014. It later expanded after the invasion of Ukraine in 2022.
Since then, Russia has also reduced its external debt to around 14% of GDP, among the lowest levels for major economies, making it less vulnerable to certain forms of financial pressure. At the same time, the government has leaned on other financing tools, including withdrawals from the National Wealth Fund, increased issuance of domestic OFZ bonds, and higher VAT rates.
The move toward selling physical gold suggests that Russia is now drawing more directly on its most liquid reserve buffers. While the country still holds substantial reserves and retains significant financial defenses, the sale of bullion underscores the mounting strain on its wartime economy.
As the war in Ukraine enters its fourth year, Russia’s gold strategy is evolving from long-term reserve accumulation to active reserve liquidation. That shift highlights both the flexibility of Moscow’s financial system under sanctions and the growing cost of sustaining prolonged military conflict.