Russia Has Transitioned to Physical Gold Sales for the First Time

Historic Step from the Central Bank of Russia

The Central Bank of Russia has made a remarkable decision to contribute to the funding of the state budget in light of increasing economic challenges. The relevant authority has begun selling physical gold to the market for the first time. Previously, gold transactions in the National Wealth Fund were conducted solely as internal accounting movements and were not open to external markets. This way, Russia maintained its position as the fifth largest holder of gold in the world with over 2,300 tons of gold reserves.

Economic Pressures and Budget Deficit

Recently increasing global and local economic pressures have forced the Central Bank of Russia to open its gold reserves to real markets. The budget deficit following the country’s special military operation has become one of the determining factors in this critical decision. According to high-level sources, there were a total of 405.7 tons of gold in the National Wealth Fund before the operation.

Details of Gold Sales

The Russian Ministry of Finance has directed 232.6 tons of gold, corresponding to 57% of these reserves, to be sold for revenue generation purposes. Thus, the amount of gold in the fund will decline to 173.1 tons by November 1, 2025. The total value of the fund has decreased from 113.5 billion dollars to 51.6 billion dollars in the last two years, clearly demonstrating the impact of economic fluctuations.

Status of the National Wealth Fund

The ratio of the National Wealth Fund to the national income has also significantly decreased from 7.3% to 1.9%, increasing economic vulnerability. This fund, composed of gold and liquid assets such as Chinese yuan, has played an important role in supporting Russia’s budget.