Russia is reducing its gold reserves due to the budget deficit: holdings have already fallen to their lowest level since 2019. This was reported by UNN, citing data from the Foreign Intelligence Service of Ukraine.
The reduction in the foreign-exchange and gold reserve is taking place against the backdrop of rising budgetary needs, declining oil and gas revenues, and significant expenditures on the war against Ukraine. In September 2026, Russia's monetary gold reserves decreased by another 6.2 tonnes, reaching their lowest level since the end of 2019.
Details
Overall, since December 2025, Russia's gold reserves have decreased by approximately 62 tonnes, or 2.7%. This has become one of the country's longest periods of declining gold holdings in recent decades. At the same time, Russia's total international reserves are also shrinking. As of October 9, 2026, they amounted to $723.5 billion, which is $45.5 billion, or 5.9%, less than at the beginning of September. Over the following week, the figure fell to $723.2 billion.
The dollar value of monetary gold decreased from $333.5 billion to $301.6 billion during September. At the same time, the decline in the value of the reserves is linked not only to the reduction in physical holdings but also to fluctuations in market prices and the revaluation of assets.
One of the reasons for the financial pressure on Moscow remains the federal budget deficit. In January–September 2026, it amounted to 5.186 trillion rubles, or 2.2% of GDP. In addition, Russia's oil and gas revenues for the nine-month period fell by 17.2% compared with the same period last year. Meanwhile, government expenditures increased by 14.5%, in particular due to the financing of military needs.
To finance budgetary needs, the Russian authorities are using, among other things, funds from the National Wealth Fund. Transactions involving the fund's foreign-currency and gold assets are carried out with the participation of the Central Bank of Russia. At the same time, the reduction of monetary gold in international reserves does not mean that the entire corresponding amount was directly used to cover the budget deficit.
It should also be remembered that the Kremlin's ability to use international reserves is limited by Western sanctions. A significant portion of the Russian Central Bank's foreign assets has remained frozen since 2022. As a result, gold held in Russia and assets denominated in Chinese yuan remain more accessible for financial operations. The use of accumulated reserves allows the Russian authorities to support government spending, but cannot fully compensate for the prolonged decline in budget revenues.
If the substantial deficit persists and available reserves continue to be depleted, Moscow will have to rely more actively on borrowing, raise taxes, or revise government spending.
As a reminder
Russia is selling off its gold reserves at the fastest pace since 1998 to cover the budget deficit. The latter threatens to grow to 7.3 trillion rubles.