The Bank of Russia’s gold holdings fell by 1.6 million ounces since the start of the year. Russia’s gold reserves have fallen to their lowest level in more than six years as the Kremlin seeks to plug a widening budget shortfall. The Bank of Russia’s gold holdings fell to 73.2 million ounces as of August 1, down 1.6 million ounces since the start of the year, according to data published by the central bank on Thursday. The stockpile is now at its lowest level since January 2020, with the value of the reserves declining by $33.7 billion in the first seven months of the year. The fall comes as Russia’s budget faces mounting pressure, with the Kremlin seeking ways to fund its war in Ukraine. In May, the Financial Times reported that the war in Ukraine is set to cost Russia €24 billion more than planned this year, with even larger overspends expected in 2027 and 2028. Moscow was once the world’s largest sovereign buyer of gold before halting purchases in early 2020. In 2022, Russia indicated it would restart gold purchases, helping provide an outlet for bullion that had become harder to export under Western sanctions imposed after the invasion of Ukraine. But the central bank did not resume buying at pre-2020 levels, according to Bloomberg.
