Yesterday at 21:51
Russia has started selling off its gold reserves after years of accumulation, driven by declining oil and gas revenues, according to Ukraine’s Foreign Intelligence Service of Ukraine, UATV English reports.
In the first quarter of 2026, the Central Bank of Russia sold approximately 21.8 tonnes of gold, reducing total reserves to around 2,305 tonnes. The move reflects growing fiscal pressure, with Russia’s budget deficit nearing $62 billion.
The shift from accumulation to liquidation began in November 2025, when the central bank started selling gold directly to domestic buyers — including banks, state-owned companies, and investment structures. Much of the proceeds are reportedly converted into Chinese yuan, as access to hard currencies via global markets remains heavily restricted.
For over two decades, Russia had built up its gold reserves, purchasing more than 1,900 tonnes between 2002 and 2025. The most aggressive accumulation phases occurred between 2008–2012 and 2014–2019. That strategy has now clearly reversed.
According to intelligence estimates, domestic gold trading surged to 42.6 tonnes in March alone — 3.5 times higher than a year earlier. A significant portion of transactions involves swap deals, where gold is used as collateral in exchange for short-term liquidity.
In effect, gold is no longer just a reserve asset — it has become a tool for managing budget deficits in real time.
The underlying cause is straightforward: falling energy revenues combined with sustained wartime and social spending. With external borrowing largely inaccessible and internal debt rising, the Kremlin is turning to its reserves as a last resort.
If current trends continue — roughly 7 tonnes sold per month — Russia could offload between 80 and 90 tonnes of gold in 2026.
While not an immediate collapse, the move signals a deeper issue:
A country that once showcased its reserves as a symbol of strength is now gradually consuming them to stay afloat.
And that, quietly, says more than any official statement ever could.
