In September 2026, Russia reduced the physical volume of its monetary gold to its lowest level since the end of 2019. According to the Foreign Intelligence Service of Ukraine, the Central Bank of the Russian Federation decreased its gold reserves amid a widening budget deficit, falling oil and gas revenues, and significant expenditures on the war against Ukraine. This trend reflects increasing financial pressure on the state system and shrinking opportunities to replenish the treasury.
Dynamics of Gold Reserve Reduction
According to the agency, in September the Central Bank of Russia continued the trend of reducing the physical volume of gold reserves, which has been recorded for the tenth consecutive month. In a single month, reserves decreased by 6.2 tonnes to 2.26 thousand tonnes. Overall, since December 2025, the reduction has reached approximately 62 tonnes, or about 2.7 percent of the total volume. Along with the physical decrease in the mass of the metal, its dollar value has also declined.
In September and October, the total value of monetary gold in the reserves dropped from $333.5 billion to $301.6 billion. This decline was driven both by direct asset sales and by market price fluctuations and asset revaluation. Meanwhile, the country's total international reserves as of October 9 were estimated at $723.5 billion, which is $45.5 billion lower than at the beginning of September.
Mechanisms for Financing the Deficit
The Russian government is forced to tap previously accumulated reserves due to the growing budget gap. As traditional oil and gas revenues decline while government spending remains high, the Russian Ministry of Finance sells gold and currency assets from the National Wealth Fund to the Central Bank in exchange for rubles. In turn, the Central Bank conducts corresponding operations on the domestic market using remaining liquid instruments, such as Chinese yuan and gold.
Current international sanctions significantly narrow Moscow's room for maneuver. A significant portion of the Central Bank's foreign assets has been frozen since 2022, making gold and yuan the key available resources. Consequently, the total volume of declared international reserves does not reflect the actual amount of liquid funds that the Russian authorities can freely dispose of under current conditions.
Economic Consequences and Risks
The sale of gold temporarily covers state expenditures without a sharp increase in domestic borrowing or an immediate reduction in budget programs. However, gold reserves cannot fully replace permanent tax and export revenues. According to experts and intelligence assessments, the continuation of this policy amid the current deficit level will force authorities to resort to tax hikes, increased borrowing, or budget sequestration.
At the same time, international analytical centers, including Danish intelligence, point to general signs of severe strain in the Russian economy. Financial constraints are intensifying as military spending continues to absorb a substantial share of state resources against the backdrop of a shrinking revenue base.
