Russia gold reserves fall to four year low amid budget strain
Russia’s central bank has reduced its gold holdings to the lowest level in four years after selling roughly 500,000 troy ounces in early 2026, as mounting fiscal pressure and declining energy revenues weigh on the country’s finances.
Data released by the Bank of Russia shows reserves fell to 74.3 million troy ounces as of March 1, down from 74.8 million at the start of the year. The reduction came in two stages, with 300,000 ounces sold in January and another 200,000 ounces in February. The latest level marks the lowest since March 2022.
Despite the drop in physical volume, the value of Russia’s gold reserves rose to 384 billion dollars, supported by elevated global gold prices. A central bank official said the reserves remain stored domestically and described the changes as part of routine market operations, though the timing coincides with growing financial pressure on the state.
Russia’s federal budget has come under increasing strain in 2026. The deficit reached 3.45 trillion rubles in January and February, nearly matching the full year projection of 3.8 trillion rubles. Government spending totaled 8.2 trillion rubles over the two month period, far exceeding revenues of 4.8 trillion rubles.
A sharp decline in oil and gas income has contributed to the imbalance. Revenues from the sector fell by 47 percent year on year at the start of 2026, reaching their lowest levels since the pandemic. Export prices for Russian crude, measured in rubles, were about 42 percent below the assumptions used in the federal budget.
The weakening of energy income has forced policymakers to consider broader fiscal adjustments. Reports indicate that authorities are examining potential spending cuts of around 10 percent as they attempt to stabilize public finances.
The drawdown in gold reserves marks a shift for a country that spent years building one of the largest bullion stockpiles in the world. Russia remains the fifth largest holder of gold globally, behind the United States, Germany, Italy, and France, but recent trends point to a gradual erosion of its financial buffers.
The National Wealth Fund, another key reserve mechanism, has also seen significant declines. Its gold holdings have fallen by more than 70 percent since mid 2022, dropping from over 550 metric tonnes to about 160 tonnes by early 2025. Analysts at VTB Bank estimate that Russia could withdraw up to 2.5 trillion rubles from the fund in 2026, representing around 60 percent of its remaining liquid assets.
The current trajectory reflects a broader shift in Russia’s economic position, as lower energy revenues and sustained fiscal demands reduce the room for maneuver in managing reserves.
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