Russia's gold reserves fell below $300 billion at the end of June, marking the sixth consecutive monthly decline, according to the Central Bank of Russia (CBR). The CBR valued the country's gold reserves at $298.99 billion at the end of last month, according to a report released on Tuesday. The decline is linked to sales matching parallel transactions involving assets from the National Wealth Fund, aimed at covering a budget deficit that reached 4.6 trillion rubles by the end of March, according to Freedom Finance Global analyst Natalia Milchakova. The broader decline in reserve assets reflects Russia's economic challenges in the fifth year of its war with Ukraine under international sanctions.
CBR Total Reserve Assets Drop to $720.4 Billion
Total official reserve assets stood at $720.4 billion at the end of June, down from $747.4 billion in May, according to the CBR report. Foreign currency reserves remained flat over the same period at $392.4 billion at the end of June, compared with $392.3 billion in May. As of May 1, the CBR held 73.9 million ounces of gold bullion in its international reserves. In just one month, its gold reserves decreased by 200,000 ounces, bringing the total decline since the start of 2026 to 900,000 ounces. The CBR's total gold reserve fell to its lowest level since March 2022.
Gold Sales Linked to Budget Deficit and National Wealth Fund Transactions
The CBR is selling gold to match parallel transactions involving sales of assets from the National Wealth Fund, which are part of the country's gold and foreign exchange reserves. "First and foremost, it is to cover the budget deficit, which reached 4.6 trillion rubles by the end of March," Freedom Finance Global analyst Natalia Milchakova told The Moscow Times. "Without partial compensation from the Central Bank amid modest oil and gas revenues at the start of the year, this figure could have surpassed 5 trillion rubles." Milchakova added that "the gold sales could have been aimed at building up foreign currency reserves, as a shortage emerged due to weak export earnings early in the year. The precious metal was exchanged for yuan."
In metric terms, the central bank lost 27.9 tonnes of gold between January and April, representing the most significant drop in their sovereign bullion reserves since 2002, according to World Gold Council data. In May of 2002, the CBR saw its gold holdings plummet by 41.5 tonnes in a single month. Russia's gold reserves declined to 2,304.76 tonnes as of April 1, 2026, including a decrease of 6.22 tonnes in March alone, the Central Bank reported a month ago.
Domestic Gold Demand Surges 350% Compared to March 2025
Domestic demand for gold within Russia has skyrocketed as the country's economy struggles in the fifth year of its war with Ukraine. According to the Moscow Exchange, the volume of gold transactions last month was up more than 350% compared to March of 2025, reaching 42.6 tonnes -- 28.6 tonnes in swap transactions and 14 tonnes in spot transactions. With the ruble's decline, the increase was even more dramatic: a 500% increase from the prior year, reaching 534.4 billion rubles, or $7.1 billion. Russian consumers purchased 75.6 tonnes of gold in 2024, representing approximately 25% of the country's annual production.
Russia Sold 300,000 Ounces of Gold in January at Record Prices
On Feb. 20, Russia's central bank announced it had sold 300,000 ounces of gold from its reserves in January as prices hit record highs above $5,500 per ounce, lowering its total holdings to 74.5 million ounces. This was the first decrease in Russia's gold reserves since October. Gold prices averaged roughly $4,700 per ounce in January, but peaked at $5,600 per ounce, so the bullion sales likely brought in somewhere between $1.41 billion and $1.68 billion. Even with the sale, the value of Russia's gold reserves rose 23% in January to $402.7 billion as prices shot to record highs.
Russia's Gold Exports to China Nearly Double in Value During First Half of 2025
In July, Bloomberg reported that Russia's precious metals exports to China nearly doubled in value during the first half of 2025. "Chinese imports of Russian precious metal ores and concentrates, including gold and silver, jumped 80% to $1 billion from the same period a year earlier," Bloomberg reported at the time, citing data from Trade Data Monitor and China's customs office. "Bullion prices have climbed about 28% this year, boosted by heightened geopolitical risks and trade tensions, alongside buying by central banks and exchange-traded funds." Russia's gold exports to China are up in volume terms, but much of the difference is also due to the gold price rally over the last 12 months, with spot prices rising nearly 43% over the last 12 months.
Russia Built Gold Reserves Through Purchases Between 2002 and 2025
Russia's gold reserves were built up primarily between 2002 and 2025, when it purchased over 1,900 tons of gold, buying just over 500 tonnes between 2008 and 2012, and 1,200 tonnes between 2014 and 2019. According to Finam analyst Nikolai Dudchenko, Russia's net gold purchases have amounted to only 55.4 tons since 2020. Over the course of 24 years following 2002, Russia's central bank was generally a gold buyer, frequently purchasing hundreds of tonnes per year, and never sold more than 100,000 ounces or 3.1 tonnes of bullion in a single month. The lone exception was July of 2005, when 7.7 tonnes of gold came off the bank's balance sheet.
Russia is the world's number-two gold producer -- second only to China -- with an annual output of over 300 tonnes. Russia's central bank was also one of the world's biggest sovereign gold buyers, but its purchases have fallen off since the full-scale invasion of Ukraine in 2022.
FAQ
What did Russia's Central Bank report about its gold reserves at the end of June?
The Central Bank of Russia valued the country's gold reserves at $298.99 billion at the end of June, marking the sixth consecutive monthly decline, according to a report released on Tuesday.
Why is Russia selling gold from its reserves?
The CBR is selling gold to match parallel transactions involving sales of assets from the National Wealth Fund, aimed at covering a budget deficit that reached 4.6 trillion rubles by the end of March, according to Freedom Finance Global analyst Natalia Milchakova. The sales are also aimed at building up foreign currency reserves, with the precious metal exchanged for yuan.
How much gold did Russia sell in January and at what price?
Russia's central bank sold 300,000 ounces of gold from its reserves in January as prices hit record highs above $5,500 per ounce. Gold prices averaged roughly $4,700 per ounce in January but peaked at $5,600 per ounce, bringing in between $1.41 billion and $1.68 billion from the sales.
