Russia is reducing its gold reserves, breaking with a trend of steady accumulation that had lasted for more than 20 years, according to a July 22 report cited by BlockBeats.
Since the start of this year, Russia’s official gold reserves have declined for six straight months. By early July, holdings were down by about 43.5 metric tons, falling to their lowest level since 2022. Data cited in the report showed Russia now holds about 73.4 million troy ounces of gold, or roughly 2,282 tons, with a value of about $299 billion.
Over the same period, Russia’s total international reserves fell from $747.4 billion at the end of May to $720.4 billion at the end of June. Foreign exchange reserves, however, were largely stable, indicating that the drop in total reserves mainly came from gold assets.
The report said analysts see rising fiscal pressure as the main reason behind the gold sales. Russia’s budget deficit has widened under the combined weight of the continuing Russia-Ukraine conflict, weaker energy revenue and expanding government spending. By the end of March, the deficit had reached about 4.6 trillion rubles. Some of the gold may have been sold to domestic banks or converted into foreign currency to ease fiscal and liquidity pressure.
Russia had previously been a major buyer in the global gold market for years. From 2002 to 2025, the country bought more than 1,900 tons of gold in total. Over the past 24 years, the report said, 2005 was the only year that saw a clear reduction before the current stretch.
This latest selling has taken place while gold prices are at elevated levels. Russia’s central bank had previously said it sold part of its gold reserves after gold prices broke above the record high of $5,500 per ounce. Analysts cited in the report said Russia is not abandoning its gold strategy, but is instead treating gold less as a long-term reserve asset and more as a source of funds that can be mobilized under fiscal pressure.