Russia has started selling gold from its central bank reserves amid the pressure of rising budget deficit and continuous military spending. This is the first time in the last 25 years that the country has taken such a step, which is considered a major change in reserve management.
Impact of increasing military spending
According to the report, the long-running military expenditure has increased the pressure on government finances. Due to this, the government has to resort to its gold and foreign exchange reserves, so that the budget deficit can be controlled.
Gold reserves at four-year low
Due to continuous sales, Russia’s gold reserves have now reached their lowest level in the last four years. This is a sign that the economic pressure is deepening and the government is having to use even its reserves considered safe.
bulk sales
According to data, between 2022 and 2025, gold and foreign currency together were sold worth more than 15 trillion rubles (about 150 billion dollars). At the same time, in the first two months of 2026, reserves worth an additional 3.5 trillion rubles ($35 billion) have been sold.
Fast sales in January-February
According to data from the Central Bank of Russia, about 3 lakh ounces of gold was sold in January 2026, while an additional 2 lakh ounces were sold in February. This pace shows that financial pressure is increasing instead of decreasing. According to experts, this step of Russia shows that amidst global uncertainties and domestic economic pressures, the country is making major changes in its financial strategy, which may impact its economy in the future.