[REVISION HISTORY]

Russian gold reserve depletion

2 recorded revisions of this situation.

What changed

2026-11-05 05:24 UTC → 2026-11-05 09:43 UTC · added ~~removed~~

The Central Bank of Russia has been selling gold reserves for ten consecutive months to finance a growing budget deficit. This deficit, driven by military spending and declining oil and gas revenues amid Western sanctions, was projected to reach 7.3 trillion rubles, doubling original estimates. Since December 2025, gold reserves have decreased by approximately 62 tonnes (2 million fine troy ounces), bringing total reserves to 2,264 tonnes, the lowest level since the end of 2019. To bypass international banking obstructions caused by sanctions, the government is utilizing gold as a liquid asset, often selling it on the domestic market or through channels involving China. Notably, Hong Kong imported a record 112.7 tonnes of Russian gold during the first seven months of 2026. During the third quarter of 2026, the Central Bank of Russia sold 18.66 metric tons of gold, which marked the largest reduction by any central bank globally. This liquidation follows directives from the Russian Ministry of Finance to fund the National Welfare Fund and cover a federal budget deficit projected to reach at least 3.2% of GDP. While the current drawdown is significant, it remains smaller than the 118 tonnes sold during the 1998 financial crisis. In contrast to Russia's sales, global central banks purchased 321.2 tons of gold during the same period, with the People's Bank of China acting as the largest ~~buyer.~~ buyer, adding 63.14 tons to its reserves.

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