Bank of Russia Sells Gold to Fund Military Spending

The Central Bank of the Russian Federation sold 6.2 tonnes of gold in September 2026, reducing sovereign holdings to 2,264 tonnes. This represents the lowest reserve level since late 2019 and marks the tenth consecutive month of gold reductions, reversing a long-term strategy of accumulation.

Russia has liquidated approximately 62 tonnes of gold since December 2025 to finance a federal budget deficit driven by military and security expenses. These costs are projected to account for 38% of total federal spending in 2026. The current pace of liquidation is the fastest since the economic crisis of 1998-2000.

While the central bank draws down reserves, gold exports to China have increased in value. Simultaneously, domestic retail demand in Russia has reached record highs as citizens seek to protect their savings.