On April 20, 2026, Russia confirmed it has sold 22 tons of gold bullion from its central bank reserves, a significant action taken to mitigate the country's escalating federal budget deficit. This move comes amid ongoing military spending pressures resulting from the conflict in Ukraine.

The decision to liquidate these gold reserves marks a historic shift in Russia's fiscal policy, as it is the first time in a quarter-century that physical gold has been placed on the market rather than simply moved between government accounts. Over the past four years, Russia's gold holdings have diminished significantly, with current reserves dropping to 74.3 million ounces, the lowest level observed in recent history.

Between 2022 and 2025, Russia has reportedly sold over RUB 15 trillion (approximately $150 billion) in gold and foreign currency, with an additional RUB 3.5 trillion (around $35 billion) sold in the early months of 2026. In January alone, the Central Bank of Russia disposed of 300,000 ounces of gold, followed by 200,000 ounces in February.

The Russian federal budget has faced substantial strain, with a deficit reaching 2.6% of GDP by the end of 2025, surpassing initial projections. This fiscal deterioration is compounded by decreasing oil prices and increasing military expenditures, which have surged by more than 40% year-on-year.

In addition to gold sales, the Russian government has diversified its funding sources, including borrowing from its National Wealth Fund and issuing domestic treasury bonds. Nevertheless, the sale of gold underlines the urgency of addressing the fiscal imbalances caused by ongoing military commitments.

With the global price of gold recently climbing above $5,000 per ounce, this liquidation might provide the necessary liquidity but also hints at deeper structural issues within Russia's economy. As military demands continue to rise, liquidating gold reserves presents a temporary solution to a growing and persistent budgetary challenge.