RUSSIA IS SELLING GOLD TO PLUG ITS BUDGET HOLE — BUT THE WAR MACHINE ISN’T STOPPING
Russia has become one of the world’s major gold sellers in 2026 as the Kremlin searches for fresh cash to cover a widening federal budget deficit.
According to Deutsche Welle, Russia’s gold reserves fell by roughly 43.5 metric tons since the beginning of the year, reaching about 2,282 tons in early July — the lowest level since before the invasion of Ukraine in February 2022. Moscow’s large-scale sales are estimated to have generated more than $5 billion, helped by gold prices that reached record levels earlier this year.
The pressure comes largely from soaring military expenditure. Russian defense spending has more than quadrupled since 2021, reaching around 16 trillion rubles — approximately $204 billion — in 2025. Additional war-related spending in 2026 could reach at least $28 billion, according to figures cited in the report.
Russia’s federal deficit is currently projected at around 1.6% of GDP, or roughly $40 billion, although government data suggest the shortfall could exceed official forecasts by more than 1 trillion rubles this year. (DW AMP)
Still, this is not necessarily a sign that Moscow is approaching immediate financial collapse. Much of the gold is being sold through Russia’s National Wealth Fund, which analysts estimate holds around $150 billion in assets, including roughly $50 billion considered liquid. Russia also remains one of the world’s largest gold producers, giving it the ability to rebuild reserves domestically.
The bigger variable may be oil and gas. Higher energy prices have recently strengthened Russian revenues, giving the Kremlin additional room to finance the war. Analysts cited by DW argue that as long as energy income remains strong, Russia could potentially sustain its military spending for years — even while sacrificing civilian investment and worsening its long-term economic outlook.
Gold is giving Moscow breathing room. Oil may determine how long that breathing room lasts.
Russia has become one of the world’s major gold sellers in 2026 as the Kremlin searches for fresh cash to cover a widening federal budget deficit.
According to Deutsche Welle, Russia’s gold reserves fell by roughly 43.5 metric tons since the beginning of the year, reaching about 2,282 tons in early July — the lowest level since before the invasion of Ukraine in February 2022. Moscow’s large-scale sales are estimated to have generated more than $5 billion, helped by gold prices that reached record levels earlier this year.
The pressure comes largely from soaring military expenditure. Russian defense spending has more than quadrupled since 2021, reaching around 16 trillion rubles — approximately $204 billion — in 2025. Additional war-related spending in 2026 could reach at least $28 billion, according to figures cited in the report.
Russia’s federal deficit is currently projected at around 1.6% of GDP, or roughly $40 billion, although government data suggest the shortfall could exceed official forecasts by more than 1 trillion rubles this year. (DW AMP)
Still, this is not necessarily a sign that Moscow is approaching immediate financial collapse. Much of the gold is being sold through Russia’s National Wealth Fund, which analysts estimate holds around $150 billion in assets, including roughly $50 billion considered liquid. Russia also remains one of the world’s largest gold producers, giving it the ability to rebuild reserves domestically.
The bigger variable may be oil and gas. Higher energy prices have recently strengthened Russian revenues, giving the Kremlin additional room to finance the war. Analysts cited by DW argue that as long as energy income remains strong, Russia could potentially sustain its military spending for years — even while sacrificing civilian investment and worsening its long-term economic outlook.
Gold is giving Moscow breathing room. Oil may determine how long that breathing room lasts.