International Desk | dbarta24.com– Under the government of President Vladimir Putin, the Central Bank of Russia has sold approximately 22,000 kg (21.8 tons) of gold this year. According to a report by international market analyst Kitco, this massive liquidation is a strategic move to address Russia’s burgeoning budget deficit.
The Deficit Crisis
By the end of March 2026, Russia’s budget deficit soared to $61.2 billion, putting immense pressure on the national economy. As the conflict in Ukraine enters its fifth year, the Kremlin is increasingly forced to tap into its reserve assets, like gold, to maintain fiscal stability.
Data from the Central Bank of Russia shows that as of April 1, 2026, the country’s total gold reserves stood at 2,304.76 tons. In March alone, the stockpile decreased by 6.22 tons.
Internal Demand Spikes
While the government is selling, the Russian public is buying. According to the Moscow Exchange, gold trading volume in March surged by over 350% year-on-year, reaching 42.6 tons. Due to the devaluation of the Russian Ruble, the total value of these transactions jumped by 500% to 534.4 billion rubles (approximately $7.1 billion).
Shift in Strategy
Russia spent decades building its “gold fortress.” Between 2002 and 2025, the country purchased over 1,900 tons of gold, with peak buying periods between 2008–2012 and 2014–2019. However, this trend shifted after 2020, and the central bank has now moved from being a primary buyer to a strategic seller.
In January 2026, Russia sold roughly 300,000 ounces of gold when international prices peaked above $5,500 per ounce, generating an estimated $1.41 to $1.68 billion in revenue.
Global Context
Experts note that Russia is not alone; several central banks are currently offloading gold to cover rising defense spending, energy costs, and to stabilize their domestic currencies.
Interestingly, while Russia sells, China remains a massive buyer. Bloomberg reports that Russian precious metal exports to China nearly doubled in the first half of 2025, with the People’s Bank of China (PBOC) maintaining an active role in the gold market.
Production vs. Domestic Consumption
Russia remains the world’s second-largest gold producer, churning out over 300 tons annually. Despite the war-time economic strain, Russian citizens are turning to gold to protect their savings.
In 2024, the Russian public purchased a record 75.6 tons of gold—nearly a quarter of the country’s total annual production—as a hedge against inflation and economic uncertainty.