Russia's Gold Rush: Selling Reserves to Offset War Costs

Russia has been selling its gold reserves at an alarming rate in 2026 to offset its massive budget deficit, which is largely due to increased defense spending for the war in Ukraine.

The Russian Central Bank announced that its gold reserves stood at 73.4 million troy ounces or 2,282 metric tons as of July this year, representing a decline of around 43.5 metric tonnes since the start of 2026. This marks the lowest level of gold reserves in Russia since before the full-scale invasion of Ukraine began in February 2022.

The sell-off is estimated to have raised over $5 billion and has sparked concerns about the country's economic stability. Economist Elina Ribakova notes that selling gold means Russia is running out of other liquid assets, putting pressure on its deficit and financing options.