Russia Cuts Gold Holdings by 43.5 Tons in First Half as Budget Strain Builds

Russia has been trimming its official gold reserves, reversing a two-decade pattern of steady accumulation. Data cited by BlockBeats show the country's gold holdings have fallen for six straight months since the start of the year, down about 43.5 tons by early July to the lowest level since 2022. Russia now holds about 73.4 million troy ounces of gold (roughly 2,282 metric tons), valued at around $299 billion. Over the same period, total international reserves slipped from $747.4 billion at end-May to $720.4 billion at end-June. With foreign exchange reserves broadly stable, the decline is seen as largely driven by reduced gold assets. Analysts attribute the sales to mounting fiscal pressure. The ongoing Russia–Ukraine conflict, weaker energy revenues and higher government outlays have pushed the budget deficit wider, reaching about 4.6 trillion rubles by end-March. Some gold may have been sold to domestic banks or converted into foreign currency to ease budget and liquidity strains. Russia has historically been one of the world's largest gold buyers. Between 2002 and 2025, it added more than 1,900 tons, with a notable drawdown occurring only in 2005 over the past 24 years. The latest reduction comes amid elevated gold prices. The Central Bank of Russia has previously said it sold part of its gold after prices topped a record $5,500 per ounce. Market observers say the move does not signal an abandonment of Russia's gold strategy. Instead, it reflects a shift from long-term reserve accumulation to using gold as a liquid funding source under tighter fiscal conditions.