Russia is selling off its gold reserves for the war: over 230 tons have already been sold

The financial situation in Russia due to the war

According to ХВИЛЯ: The Central Bank of Russia has started selling physical gold from its reserves to finance the state budget due to the deteriorating financial condition of the country as a result of the war against Ukraine. Since the beginning of the conflict that started in 2022, Russia has faced serious economic challenges, prompting it to sell off part of its gold reserves.

Before the war, the Russian National Wealth Fund (NWF) had 405.7 tons of gold. However, as of now, 57% of this reserve, or 232.6 tons, has been sold. By November 1, 2025, the amount of gold in the fund will only be 173.1 tons. At the same time, the total amount of liquid assets in the NWF has decreased from 113.5 billion dollars to 51.6 billion dollars, indicating a significant reduction in the country's financial resources. The fund's reserves have decreased from 7.3% to 1.9% of Russia's gross domestic product.

Domestic gold market and military spending

According to reports, the liquidity of the domestic gold market in Russia has increased in recent years, allowing the Central Bank to conduct operations in the domestic market as part of budget rule compliance and other measures related to the NWF. It is noted that each ton of gold sold represents billions of rubles that can be used to purchase missiles, tanks, and ammunition to continue the war against Ukraine. This situation highlights the serious financial difficulties Russia faces due to the war and international sanctions.

The sale of gold from the reserves of the Central Bank of Russia is a significant indicator of the deteriorating financial situation in the country caused by military expenditures and international sanctions. The reduction in the National Wealth Fund's reserves indicates that Russia is forced to seek alternative sources of funding for its military actions, using strategic assets to cover budget deficits. This could also impact the country's economic stability in the future, as the reduction of gold and foreign currency reserves lowers financial resilience to external shocks.