Russia sells off gold at record pace to keep Putin's war funded
Photo: Russian President Vladimir Putin (Getty Images)
Russia’s central bank has been selling off the country’s gold reserves for six months in a row, allowing Russian President Vladimir Putin to keep financing the war against Ukraine, according to The Moscow Times.
The Bank of Russia has already sold a record 44 metric tons of gold in an effort to plug a widening hole in the federal budget. Since the beginning of 2026, the budget deficit has increased to nearly 6 trillion rubles.
In June alone, Russia’s gold reserves shrank by 9.33 metric tons. Overall, the country has lost 43.5 metric tons of gold since the start of 2026.
"The sell-off marks the largest liquidation of Russia’s gold reserves in at least a quarter of a century, according to data covering the entire period tracked by the World Gold Council," the report said.
Notably, even during the COVID-19 pandemic, Russia sold six times less gold than it has this year.
By depleting its "gold cushion," the Kremlin is estimated to have raised around $5.6 billion.
Freedom Global analyst Vladimir Chernov said the proceeds were used to help balance the federal budget.
"When oil and gas revenues fall below the level set by the fiscal rule, or when sovereign wealth funds are redirected toward domestic investment, the Bank of Russia conducts counter-transactions with its liquid reserve assets," Chernov explained.
He also noted that gold prices have risen significantly in recent years.
RBC-Ukraine also reported that the gap in Russia’s state budget is widening rapidly due to its war against Ukraine.
Furthermore, Zelenskyy’s office recently outlined how the proposed US "bone-crushing sanctions" against Russia would work.
