The deficit has exceeded 15 trillion rubles from 2022 to 2025, with an additional 3.5 trillion rubles accumulated in just the first two months of 2026, News.Az reports, citing Russian media.
In January, the Central Bank sold 300,000 ounces of physical gold, followed by another 200,000 ounces in February, according to official statistics. These transactions reduced Russia’s gold reserves to 74.3 million ounces, marking a four-year low.
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The sale of 14 tonnes of gold bars over two months represents the largest disposal of Central Bank gold since the second quarter of 2002, when reserves fell by 58 tonnes. In the years since, gold from the reserves had only been sold in small amounts, primarily for coin minting.
The Central Bank announced plans last November to begin actual sales of gold from its gold and foreign exchange reserves. This initiative was part of a strategy to “mirror” transactions involving assets of the National Welfare Fund, which also form part of the country’s reserves.
Since 2022, the Russian Ministry of Finance has been actively selling foreign currency and gold from the fund to replenish the budget, especially as military spending reached levels not seen since the Soviet era. Previously, these gold transactions were virtual: the government sold gold to the Central Bank itself, keeping the bars within the country’s reserves, which currently exceed 2,000 tons—the fifth largest globally.
The situation has now changed, as the Central Bank has begun executing real market transactions selling physical gold, similar to its operations with Chinese yuan from the National Welfare Fund.
Economists Alexandra Prokopenko and Alexander Kolyandr suggest that this shift may be due to the Central Bank’s reluctance to deplete its remaining yuan reserves. These yuan assets are essential for market operations and managing the ruble exchange rate. The exact size of these reserves is unknown, as the Central Bank has classified statistics following sanctions and $300 billion of Western assets were frozen.
Investment strategist Alexander Bakhtin notes that the Central Bank may have also aimed to secure profits from rising gold prices. In January, gold exceeded $5,600 per ounce, rising 65% over the past year and 140% since early 2022. This price increase temporarily pushed the share of gold in reserves near 50%, prompting risk reduction measures.
Investment banker Ilya Sushkov estimates that January’s gold sales may have generated around 120 billion rubles. In total, the Central Bank sold about 0.4% of its reserves in one month, covering only about 3% of the annual budget deficit.
Sushkov believes the Central Bank may resume gold purchases when prices drop. Historically, the regulator has increased gold reserves nearly sixfold since the mid-2000s, from roughly 400 tons to 2,300 tons, but halted acquisitions after the outbreak of war.
As of March 1, gold in Russia’s reserves was valued at $384 billion, accounting for 47% of the country’s gold and foreign exchange reserves. The total value of reserves is estimated at $809 billion, though $300 billion of that is frozen in Western accounts and no longer accessible.
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