Russia sells gold from reserves to cover the budget deficit (The Moscow Times)

Russia has become, for the second consecutive quarter, the world's largest gold seller among central banks, using its precious metal reserves to cover the budget deficit fueled by military spending. In the third quarter of 2026, the Central Bank of Russia sold 18.66 tons of gold, according to data cited by The Moscow Times.

Russia's budget deficit reached 7.3 trillion rubles this year and has exceeded 22 trillion rubles since the beginning of the war. The Central Bank has been selling gold for ten consecutive months, as part of operations that mirror transactions by the Ministry of Finance. The latter used gold from the National Wealth Fund to finance budgetary needs.

In the previous quarter, the institution's gold reserves fell by 21.77 tons, while from December to September the reduction amounted to approximately 62 tons. This is the most significant pace of selling recorded by Russia since 1998, the year of a severe financial crisis.

While Russia is reducing its reserves, central banks globally purchased 321.2 tons of gold in the third quarter. China was the largest buyer, with 63.14 tons, followed by Poland, Uzbekistan, and Kazakhstan. Some Russian gold is being redirected to Asia after access to the London market was restricted. In the first seven months of the year, approximately 100 tons of Russian gold reached Hong Kong, three times more than during the same period last year.