Russia sells gold reserves to raise cash amid widening fiscal deficit

Russia has become one of the world’s largest sellers of gold over the past twelve months, using the metal as a liquid asset to cover a growing public‑sector deficit driven by record defence spending. Sales at the start of 2026 generated more than $5 billion, with the price of gold around $4,800 per ounce before falling to about $4,000. By the end of the first half of the year the country’s gold holdings fell to 73.4 million troy ounces (2,282 tonnes), a drop of roughly 43.5 tonnes – the lowest level since before the February 2022 invasion of Ukraine.

In the first quarter Russia sold about 22 tonnes of gold, and June sales alone are estimated to have brought in $1.23 billion. Analysts say the move does not signal imminent bankruptcy but reflects the need for liquid assets as oil and gas revenues fall short of fiscal targets. “The fact that they are selling gold means they are running out of other more liquid assets,” economist Elina Ribakova said, while analyst Chris Weafer described the sales as “extraordinary within a relatively normal trend.”