Russia’s official gold reserves slipped below 300 billion US dollars at the end of June 2026, marking the sixth consecutive monthly decline, according to the latest figures released by the Central Bank of Russia (CBR). The reduction comes as the country continues to deal with mounting fiscal pressure, international sanctions, and higher government spending.
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The CBR valued Russia’s gold reserves at 298.99 billion US dollars by the end of June, down from the previous month. Overall official reserve assets also declined significantly to 720.4 billion US dollars, compared with 747.4 billion US dollars in May. Meanwhile, foreign currency reserves remained broadly unchanged at 392.4 billion US dollars.
Gold Holdings Continue to Shrink
Russia has now recorded six straight months of declining gold reserves. Earlier data showed that by May 1, the central bank held 73.9 million ounces of gold. During April alone, reserves declined by 200,000 ounces, taking the total reduction since the beginning of 2026 to 900,000 ounces.
In metric terms, Russia’s gold holdings dropped by 27.9 tonnes between January and April, representing the country’s largest reduction in sovereign gold reserves since 2002. By April 1, total official gold reserves had fallen to 2,304.76 tonnes, their lowest level since March 2022.
Why Is Russia Selling Gold?
Market analysts believe the Central Bank is selling gold primarily to help finance the government’s growing budget deficit.
According to Freedom Finance Global analyst Natalia Milchakova, Russia’s budget deficit reached 4.6 trillion rubles by the end of March 2026. Without support from reserve asset sales, the deficit could have exceeded 5 trillion rubles.
She also noted that part of the gold sales was likely used to strengthen foreign currency reserves by exchanging bullion for Chinese yuan, helping offset weaker export revenues caused by lower energy income.
Higher Spending and Sanctions Continue to Weigh
Russia’s ongoing military spending related to the Ukraine conflict, combined with international sanctions and weaker oil and gas revenues, has placed increasing pressure on public finances.
Analysts believe additional gold sales could continue if government expenditure remains elevated. Similar reserve management strategies have also been adopted by several developing-country central banks facing fiscal challenges.
Domestic Gold Demand Remains Strong
While official reserves continue to decline, domestic investment demand for gold has surged.
According to Moscow Exchange data, gold trading volumes increased by more than 350% compared with the previous year, reaching 42.6 tonnes during the latest reporting period. In value terms, transactions climbed around 500%, totaling 534.4 billion rubles, equivalent to approximately 7.1 billion US dollars.
Russian consumers purchased 75.6 tonnes of gold during 2024, accounting for nearly one-quarter of the country’s annual mine production as investors increasingly turned to precious metals to preserve wealth.
Russia Remains a Major Gold Producer
Despite reducing official reserves, Russia remains the world’s second-largest gold producer after China, producing more than 300 tonnes of gold annually.
Gold exports to China have also increased significantly. Earlier reports indicated that shipments of Russian precious metals to China nearly doubled in value during the first half of 2025, supported by both stronger export volumes and higher global gold prices.
Analysts say that while Russia continues to reduce official gold reserves, long-term demand from domestic investors and international buyers could remain an important support for the country’s gold industry.
FAQs
1. Why are Russia’s gold reserves declining?
Russia is selling part of its gold reserves to help finance its growing budget deficit and strengthen foreign currency holdings amid weaker export revenues.
2. How much were Russia’s gold reserves worth in June 2026?
According to the Central Bank of Russia, the country’s gold reserves were valued at 298.99 billion US dollars at the end of June 2026.
3. How many months have Russia’s gold reserves been falling?
Russia has recorded six consecutive monthly declines in its official gold reserves during 2026.
4. Is Russia still one of the world’s biggest gold producers?
Yes. Russia remains the world’s second-largest gold producer after China, with annual production exceeding 300 tonnes.
5. Why is domestic demand for gold increasing in Russia?
Economic uncertainty, inflation concerns, sanctions, and currency weakness have encouraged Russian investors to buy physical gold as a store of value and wealth protection.
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