The Bank of Russia has sold almost 22 tons of gold since the beginning of 2026 to cover the budget deficit, which reached 4 trillion 600 billion rubles (approx. PLN 221 billion) at the end of March, against the background of low revenues from oil and gas in the first months of the year.
Gold stocks in the reserves of the Russian Federation as of April 1, 2026 decreased by 0.7 million troy ounces (or approximately 22 tons of gold) and amounted to approximately 74 million troy ounces (approx. 2,304 tons), of which March alone brought a decrease by 0.2 million ounces (over 6 tons), the Russian Central Bank reported on Monday.
Putin talks about the power of the state, but he pays his bills with gold from his safe. The Kremlin had to resort to a contingency plan again.
The Moscow Stock Exchange reported that in March 2026, the volume of gold trading on the precious metals market increased more than 3.5 times compared to March last year and reached over 42 tons (over 28 tons in swap transactions and 14 tons in spot transactions).
In ruble terms, the value of turnover increased fivefold – to 534 billion 400 million rubles (approx. PLN 26 billion).
Gold sales to finance the budget deficit may continue given the sharp increase in government spending from budgeted levels. This type of sale of gold from reserves by the Bank of Russia is entirely consistent with the practice followed by other central banks, especially in developing countries
– Reuters quotes the chief analyst of Freedom Finance Global, Natalia Milczakova.
Since the fall of 2025, the Bank of Russia has been conducting gold purchase and sale operations on the domestic market, the liquidity of which has increased significantly, reflecting similar actions of the Ministry of Finance regarding funds from the National Welfare Fund.
The sale of gold also allows the central bank to maintain the desired level of currency diversification of reserves with a total value of almost USD 775 billion. (approx. PLN 2 trillion 790 billion), in which the share of gold has increased significantly in recent years due to the increase in its price.
“That moment has just come”
Russia built its gold reserves mainly in the years 2002–2025, purchasing over 1,900 tons of the metal. The largest part of these purchases occurred in the years 2008–2012 (just over 500 tons) and 2014–2019 (over 1,200 tons). Since 2020, the net balance of gold purchases by Russia has amounted to 55.4 tons, says Finam analyst Nikolai Dudchenko.
Currently, some central banks continue to sell gold to cover expenses, including defense expenses, and also because funds are needed to address the increase in energy prices and to support national currency exchange rates.
– said Dudchenko.
Many central banks previously bought gold only to sell it at a high price at a time of greatest need. And it seems that this year – in the conditions of a difficult geopolitical situation and uncertainty in the global economy – such a moment has arrived
– said Milczakowa. She gave the example of Turkey's central bank, which sells currencies from its reserves to stabilize the weakening lira.
Gold is still a dangerous rival to the dollar
In the future, according to Freedom Finance Global estimates, the demand for gold should not decline sharply, because it remains the most serious competitor to the dollar as a reserve currency.
When gold prices are low, central banks will buy them during corrections and, in the long run – at high prices – sell them to obtain the liquidity needed to achieve important goals, including stabilizing the banking system. In the next two months, according to our forecast, the gold price may rise to $5,000 again. per troy ounce (approx. PLN 18,000)
– said Milczakowa.
Gold is falling on Monday as the dollar strengthens and inflation fears intensify following the blocking of the Strait of Hormuz.
The spot price of gold fell to $4,797. per troy ounce (approx. PLN 17,000), falling during the session to the lowest level since April 13.
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