Russia’s Central Bank announced Wednesday it will sell physical gold from its reserves for the first time, turning to one of its last liquid assets as sanctions and war costs force the Kremlin to drain the National Wealth Fund that once held $113.5 billion.
Previously, gold transactions were largely virtual accounting moves that kept bullion within Russia’s reserves. The Central Bank will now sell gold physically on the domestic market, converting the metal directly into rubles to fund government operations.
Russia maintains more than 2,300 tons of gold in its total national reserves, the fifth-largest stockpile globally. The Central Bank did not disclose the timing or volume of the physical sales.
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“With domestic gold market liquidity having increased in recent years, the Bank of Russia now conducts equivalent operations on the domestic market not only through yuan transactions but also partially through gold,” a Central Bank spokesperson told Interfax.
The National Wealth Fund held 405.7 tons of gold before Russia launched its full-scale invasion of Ukraine in February 2022. Since then, the Finance Ministry has liquidated approximately 57% of that stockpile — about 232.6 tons — to address budget shortfalls. By November 1, 2025, the fund held only 173.1 tons of gold.
The National Wealth Fund’s overall liquid assets, including gold and Chinese yuan, dropped 55% to $51.6 billion.
Vladimir Chernov, an analyst at Freedom Finance Global, said the gold sales allow the Central Bank to inject currency into the market to support the ruble while reducing pressure on yuan holdings. “Using gold spreads pressure across markets and maintains reserve diversification,” Chernov said.
Russia, which produces more than 300 tons of gold annually as the world’s second-largest producer, has struggled to access international markets since Western sanctions cut it off from the London Bullion Market Association and other major exchanges. The country’s gold exports dropped from 302 tons in 2021 to 166 tons in 2024, a decline of nearly 50%.
The domestic market has seen increased activity as Russians purchase record amounts of gold amid sanctions that have limited access to foreign currency. Analysts project purchases will reach 62.2 tons this year, following a record 73.7 tons in 2024.
Russia’s federal revenues from oil and gas dropped 27% year-over-year as sanctions tighten and the ruble strengthens, increasing pressure on the government to tap sovereign reserves to maintain wartime spending levels.
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