Russia’s Gold Reserves Hit Lowest Level Since 2019

Russia’s gold reserves continued to shrink in September, with the central bank holdings falling by approximately 62 metric tons since December 2025.

The country’s gold holdings declined by 6.2 metric tons last month to approximately 2,264 metric tons, reaching their lowest level since 2019, according to data from the Bank of Russia reported by The Moscow Times on Tuesday (October 20.)

The decline continues as Russia faces budget problems due to high wartime spending and falling oil and gas revenues.

The country’s budget deficit reached 5.8 trillion rubles (US$68.4 billion) in the first eight months of 2026, surpassing the full-year target of 3.8 trillion rubles (US$44.8 billion).

Russia has not disclosed the full cost of its invasion of Ukraine, though the country plans to boost its 2027 defense spending by 27 percent to 17.1 trillion rubles (US$202.58 billion), hitting its highest military budget allocation since 2022.

The reduction in gold holdings is believed to be linked to the use of assets from the National Wealth Fund to cover that deficit.

Gold exports have been redirected to Asia, with Hong Kong and China becoming its primary buyers. Hong Kong imported 112.7 tons of Russian gold in the first seven months of 2026 – surpassing the entire 2025 total of 92.1 metric tons

In its September 2026 update, the World Gold Council reported that central banks recorded net gold purchases of 23 metric tons in July and Russia was the largest reported net seller that month, reducing its holdings by 6 metric tons.

The country sold 200,000 troy ounces in the last month alone, which equates to 6.2 metric tons, and also reduced its sovereign gold holdings to 72.8 million troy ounces – the lowest it has been since 2019. The bank has now consecutively reduced its gold holding for ten months.

Meanwhile, Russia’s gold reserves dropped to approximately US$301.6 billion by the end of September, down from US$333.4 billion the previous month.

Central Bank Governor Elvira Nabiullina addressed the decline in Russia’s gold reserves at a press conference on September 11.

"The small decrease that has occurred now is mainly related to Finance Ministry's operations, with funds from the National Wealth Fund; this happens as part of the fiscal rule. Gold is also used for the production of coins," Nabiullina said. "We do not disclose additional details of our operations with gold.”

Earlier this year, Russia’s natural resources minister drew attention to the country’s gold production figures, estimating output at 485 metric tons in 2025 and forecasting 480 to 500 metric tons in 2026, figures that differ from independent estimates.

Metals Focus puts Russian mine output 28.8 percent below official claims, highlighting growing uncertainty around the country’s gold sector amid Western sanctions. Despite the discrepancy, Russia continues to promote its position as a global gold producer, citing new discoveries and expanding reserves.

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Securities Disclosure: I, Aastha Sethi, hold no direct investment interest in any company mentioned in this article.