The Bank of Russia has begun actively utilizing the country’s gold stockpile to plug holes in the state budget. Since the start of 2026, the regulator has sold 21.772 tons of gold. This move comes as the budget deficit reached 4.6 trillion rubles by the end of March, driven by low oil and gas revenues at the beginning of the year.
According to the Central Bank’s report, monetary gold reserves decreased by 0.7 million troy ounces to 74.1 million ounces as of April 1, 2026. The bulk of the sales occurred during the first quarter, a period when energy export revenues remained suppressed due to sanctions pressure and logistical hurdles.
Key Precious Metals Market Indicators:
- Central Bank Sales Volume: ~22 tons in three months;
- Moscow Exchange Activity: The volume of gold trades in March increased 3.5 times (to 42.6 tons) compared to the previous year;
- Monetary Equivalent: Ruble turnover in the precious metals market jumped fivefold, reaching 534.4 billion rubles.
Notably, the shift in economic priorities is reflected elsewhere: drones and UAVs are now being purchased even by institutions far removed from technical fields, such as the Moscow Academy of Choreography and kindergartens in the Tyumen and Perm regions. In these curricula, drone piloting is framed as an “additional developmental activity.”
Analytical Summary
The use of gold reserves to finance current expenditures is a “red flag” indicating the depletion of more liquid resources, such as foreign currency balances in the National Wealth Fund. Although 22 tons represent only a small fraction of total reserves (about 1%), the fact that regular sales are occurring on the domestic market suggests a serious cash flow gap. The 2026 budget is trapped: defense spending and social obligations are rising, while traditional hydrocarbon revenues remain under pressure.
The anomalous growth in gold turnover on the Moscow Exchange (a fivefold increase in ruble terms) also indicates an attempt to sterilize excess money supply and a search for alternative wealth storage within the country. However, selling gold is a finite measure. If the deficit continues to grow at the first-quarter pace (over 1.5 trillion rubles per month), the state will eventually face a difficult choice: further depletion of the gold hoard, ruble devaluation, or a sharp increase in the tax burden on businesses.