Russia depletes gold reserves by 62 tons to support wartime economy

Russia’s central bank has reported a drawdown of approximately 62 tonnes of gold since December 2025, bringing the country’s total gold reserves to 2,264 tonnes—the lowest level since 2019. The depletion is part of an ongoing effort to finance a wartime economy and offset a significant budget deficit amid international sanctions and restricted access to the dollar-denominated global financial system.

Reports indicate that the Russian government is utilizing gold as a liquid, non-paper asset to bypass banking obstructions caused by sanctions. Much of this gold appears to be flowing through Hong Kong, which imported a record 112.7 tonnes of Russian gold during the first seven months of 2026.

This trend follows ten consecutive months of declining reserves. While the current drawdown is significant, it remains smaller than the 118 tonnes sold during the 1998 financial crisis. The sales are linked to Central Bank operations designed to offset budget deficits and support national expenditures.