Russian central bank's gold holdings fell by around 62 tons between December and September Russia has become the world's biggest seller of central bank gold reserves for the second consecutive quarter, as the Kremlin struggles to plug a widening budget deficit amid its costly war against Ukraine. The Bank of Russia sold 18.66 tons of gold in the third quarter of 2026, according to figures attributed to the World Gold Council (WGC), while central banks worldwide purchased a combined 321.2 tons, up 42% from a year earlier. This contrasts sharply with some other countries in Central and Eastern Europe. Poland's central bank added 40.46 tons to its reserves during this period, while the Czech Republic purchased 5.01 tons. Russia has now reduced its gold holdings for ten consecutive months. Budget shortfall The Russian central bank’s gold sell-off mirrors the Finance Ministry’s decision to tap the country’s National Wealth Fund to help finance government spending. Russia's budget deficit reached 7.3 trillion rubles (€79.57 billion) this year, bringing the cumulative shortfall since its full-scale invasion of Ukraine in 2022 to over €240.02 billion, according to the figures provided. Russian central bank's gold holdings fell by around 62 tons between December and September, marking the country's sharpest annual reduction since the 1998 financial crisis, when Russia defaulted on domestic government debt. China has emerged as a major destination for Russian gold as Western restrictions reshape Moscow's precious-metal trade. Beijing led global buyers in the last quarter with 63.14 tons. Hong Kong received roughly 100 tons of Russian-origin gold between January and July, three times the amount recorded a year earlier, according to Chinese customs figures.
China has emerged as a major destination for Russian gold as Western restrictions reshape Moscow's precious-metal trade. (Getty Images/ Anadolu)
