Russia's Gold Reserves Sold Off to Cover Soaring Budget Deficit.

Wed Feb 04 2026

Kremlin's Economic Pressures

According to UATV: Facing a dramatic shortfall in oil revenues, the Kremlin has been forced to sell off reserves of gold and precious metals. This shortfall has triggered three budget revisions and is projected to cause a fivefold increase in the budget deficit for 2025. Specifically, oil revenues entering the state budget are expected to drop by 24% in 2025. The government's budget deficit is forecast to reach $15 billion by January 2025 and exceed $75 billion by the year's end. This situation highlights the severe strain on Russia's finances from international sanctions and shifting energy markets.

Financial Strain and Gold Exports

The war has drained Russia's liquid assets in its National Welfare Fund, reducing them by two-thirds and pushing the government toward selling its gold and precious metal stockpiles. According to expert analysis, the Kremlin has planned to use $19 billion worth of these reserves in the first half of 2025 alone. Concurrently, exports of gold to China have surged to 25.3 tons for 2025, a staggering 800% increase from the previous year.

The economic difficulties and the urgent need to cover the budget deficit point to serious financial challenges for Russian authorities under the current economic conditions.

These developments signal deep structural problems within the Russian economy, stemming not only from external factors like declining oil prices but also from internal political and economic decisions. The sharp rise in gold exports to China may be an attempt to offset losses from oil revenues, yet it also indicates a growing dependency on foreign markets to support the nation's reserves.

Source: https://112.ua/en/