Russia taps gold reserves to plug widening budget gap amid war spending

In 2026 Russia has liquidated a large chunk of its gold reserves, reducing them to 73.4 million troy ounces - a decline of roughly 43.5 metric tonnes since January and the smallest stock since before the February 2022 invasion of Ukraine. The Kremlin’s finance ministry, using the National Welfare Fund, appears to have generated more than $5 billion from the sales, a step taken to address a budget deficit driven by sharply higher defence outlays.

Experts note that while the sell-off is sizable, it is not a sign of imminent insolvency; the fund’s gold holdings serve as a liquidity buffer that can be replenished from Russia’s own mines. The country’s overall gold position remains among the world’s top five, comparable to China, France and Italy. Nonetheless, the reliance on gold sales underscores the strain on Russia’s finances, which depend heavily on oil and gas revenues to sustain the war effort.