War And Falling Revenue Are Forcing The Kremlin To Sell Off Its Gold Reserves — Intelligence
Russia is currently drawing down its gold reserves to cover a budget deficit growing due to declining oil and gas revenue and increasing state spending.
Ukraine’s Foreign Intelligence Service (FISU) reported this, UATV English relays.
“In September 2026, the Russian central bank reduced its physical volume of monetary gold for the tenth consecutive month. Over the month, reserves fell by 6.2 tons — to 2.26 thousand tons, the lowest level since the end of 2019. Since December 2025, the reduction has amounted to around 62 tons, or 2.7%,” the statement says.
FISU reported that, as of October 9, Russia’s international reserves were valued at $723.5 billion — $45.5 billion, or 5.9%, less than at the start of September.
“The dollar value of monetary gold fell from $333.5 billion to $301.6 billion between September and October. This is explained not only by the reduction in physical stockpiles, but also by changes in market prices and asset revaluation,” the statement says.
It is noted that the Russian government is being forced to draw on its reserves due to a growing budget deficit.
“Oil and gas revenue is declining, while state spending, including on the war against Ukraine, remains high. To cover the shortfall, the Finance Ministry sells foreign currency and gold assets from the National Wealth Fund to the Russian central bank, receiving rubles in return,” FISU stated.
The agency reported that the Central Bank carries out corresponding operations on the domestic market, using yuan and gold.
It is noted that Moscow’s options are limited by sanctions.
“A significant portion of the Russian central bank’s foreign assets have been frozen since 2022, so domestic gold and yuan-denominated assets remain more accessible for current operations. So the total volume of international reserves doesn’t reflect the amount of funds Russian authorities can freely dispose of,” the statement says.
FISU explained that selling off reserves allows temporary support for budget spending without an immediate increase in borrowing or spending cuts.
“However, reserves don’t replace steady revenue. If the deficit persists and stockpiles aren’t replenished, Russia will have to borrow more, raise taxes, or cut budget programs,” the agency stated.
It is noted that the decline in gold reserves points to intensifying financial constraints on Russia.
“The war is consuming state resources, and falling revenue is forcing the Kremlin to spend down its reserves. The fewer reserves remain, the harder it will be to finance current needs without increasing debt and the tax burden, or cutting spending,” FISU reported.
It was previously reported that the Kremlin is starting up the printing press to finance the war.
Read also: Concessions To Putin Threaten US Interests And Won’t Bring Peace In Ukraine Closer — Senator McConnell
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1 of November 2026
