Kuala Lumpur, Russia has begun selling portions of its gold reserves in a bid to offset declining revenues from oil and gas and to ease budget pressures, according to the latest report. In January, the Central Bank of Russia reduced its holdings of gold by about 300,000 ounces — the first such decrease in months — taking advantage of record-high global prices that averaged around $4,700 per ounce.
The drop in gold holdings has brought the country’s total stash to around 74.5 million ounces, but the value of the remaining reserves actually increased by approximately 23% due to the surge in gold prices. Preliminary estimates suggest that the January sales could have generated about $1.4 billion for Russia’s budget.
Officials say this move is part of a broader strategy to fill revenue shortfalls caused by weaker oil export earnings and a widening budget deficit. Revenues from Russia’s energy sector have fallen significantly, putting pressure on government finances already strained by international sanctions and economic challenges.
The use of gold reserves — traditionally seen as a long-term buffer — highlights how rapidly Russia’s fiscal options are evolving amid external pressures. As energy income drops, liquidating assets such as gold helps generate crucial funding in the short term, but also reduces the stockpile of strategic reserves built up over many years.
