Russia Sells Billions in Gold Reserves Amid Massive Budget Deficit

Russia has sold significant volumes of its gold reserves so far in 2026 to raise cash and offset a massive budget deficit. The Russian Central Bank reported that its gold reserves stood at 73.4 million troy ounces, or 2,282 metric tons, as of July, down from around 43.5 metric tonnes since the start of 2026.

This decline represents Russia's lowest gold reserve level since before the full-scale invasion of Ukraine began in February 2022. Gold prices hit record levels earlier this year, averaging around $4,800 per ounce in the first four months before falling to around $4,000 per ounce.

The sell-off is estimated to have raised over $5 billion for Russia. Elina Ribakova, an economist with the Peterson Institute for International Economics, believes that the sale of gold indicates pressure on the deficit and funding sources.

According to Chris Weafer, a Moscow-based financial analyst, the gold sell-off is not panic selling but rather a normal trend. He notes that Russia can replenish its stocks by buying from domestic producers, as it holds significant reserves and is one of the world's largest gold producers.