Russia Sells Gold Reserves to Cover Budget Deficit Amid Falling Energy Revenues, Ukrainian Intelligence Says
Russia is drawing on its gold reserves to cover a growing budget deficit driven by declining oil and gas revenues and rising government spending, Ukraine’s Foreign Intelligence Service (SZRU) reported, UATV English reports.
Russia’s physical gold reserves fell by 6.2 metric tons in September, reaching approximately 2,260 metric tons — their lowest level since late 2019. According to Ukrainian intelligence, the country’s monetary gold holdings have been declining for 10 consecutive months.
“Since December 2025, the reduction has amounted to approximately 62 metric tons, or 2.7%. As of October 9, Russia’s international reserves stood at $723.5 billion, down $45.5 billion, or 5.9%, from the beginning of September,” the intelligence service said.
The dollar value of Russia’s monetary gold holdings also fell from $333.5 billion to $301.6 billion over September and October. Ukrainian intelligence attributed this decline not only to the reduction in physical reserves but also to changes in market prices and asset revaluation.
According to the agency, the Russian government is increasingly relying on accumulated reserves as oil and gas revenues decline while public spending, particularly 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 Central Bank of Russia in exchange for rubles. The central bank then conducts corresponding operations on the domestic market, using yuan and gold,” the report said.
Sanctions and the freezing of Russian assets abroad have further limited Moscow’s access to its financial resources. As a result, gold held domestically and assets denominated in yuan remain among the more accessible sources of funding for current operations.
The intelligence service cautioned that the overall volume of Russia’s international reserves does not reflect the amount of funds the government can freely use.
“Selling accumulated reserves allows the government to temporarily maintain budget spending without immediately increasing borrowing or cutting expenditures. However, reserves cannot replace a steady stream of revenue,” the agency said.
If the deficit persists and reserves are not replenished, Russia will have to borrow more, raise taxes, or cut government spending, Ukrainian intelligence warned.
The agency said the continued depletion of gold reserves points to growing financial constraints on the Russian economy.
Read Also: Macron Says Ukraine Needs More Than a Local Ceasefire After Deadly Russian Strike on Dnipro
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2 of November 2026
