Russian authorities have turned to radical measures to save the federal budget. For the first time in nearly a quarter-century, the Central Bank has begun the physical sale of gold from its reserves. The reason is a catastrophic deficit that exceeded 15 trillion rubles between 2022 and 2025, and grew by another 3.5 trillion in the first two months of 2026 alone.
Gold Sale Facts:
- Volumes: The Central Bank sold 300,000 ounces in January and another 200,000 ounces in February. In total, 14 tons of pure gold left the vaults in two months.
- Historical Context: This is the largest sale of bullion since the second quarter of 2002 (when reserves dropped by 58 tons). Since then, gold has only been accumulated or used in tiny amounts for minting coins.
- Current Balance: Gold reserves have fallen to 74.3 million ounces — a four-year low.
From “Virtual” Deals to Real Ones:
Until recently, gold operations within the National Wealth Fund (NWF) were merely an accounting formality: the Ministry of Finance “sold” gold to the Central Bank, simply moving the metal from one state pocket to another. Now, however, the Central Bank has entered the market with physical bullion (likely domestic or in “friendly” countries), converting strategic reserves into liquid cash.
Analytical Summary:
The transition of the Central Bank to the physical sale of gold is a clear signal of the critical exhaustion of “currency resources.”
The Yuan Deadlock: It appears that the liquid portion of reserves in Chinese yuan has reached a dangerous threshold. The regulator is afraid to “burn through” the remaining Chinese currency, as it is the only tool left to influence the ruble’s exchange rate. Gold has become the last liquid asset that can be directed toward military spending, which has reached levels not seen since the Soviet era.
End of the Accumulation Era: The decade spent turning Russia into a “gold fortress” has officially ended. By starting the sale of physical bullion, the Kremlin admits that current oil and gas revenues no longer cover the appetite of the war machine.
Risk of “Eating the Future”: If the deficit pace continues (3.5 trillion in two months), the gold reserve could melt away before our eyes. This undermines the long-term stability of the ruble and strips the country of its last strategic reserve, which remained untouched even during the most challenging periods of the last 20 years.