Russia, Moscow: Russia has begun selling its gold reserves to manage economic pressure amid rising Iran war tensions, falling energy revenues, and prolonged Ukraine conflict impacts.
The ongoing tensions in West Asia, coupled with fears of a broader conflict involving Iran, continue to unsettle global markets. The ripple effects are being felt worldwide, with several economies facing increased uncertainty and financial strain.
Amid these developments, Russia has taken significant steps to safeguard its economic stability. The country, which has relied heavily on oil and natural gas exports for over two decades, is now confronting serious financial challenges. The prolonged conflict with Ukraine has placed immense pressure on government spending, particularly in defence, which has surged sharply as the war enters its fourth year.
At the same time, Western sanctions and declining global oil prices have weakened Russia’s revenue streams. Energy resources, once contributing more than half of the nation’s income, now account for only around 20 percent. This sharp decline has intensified fiscal stress and forced policymakers to explore alternative measures.
In a notable and unprecedented move, Russia has begun selling physical gold from its reserves to address its growing budget deficit. Unlike previous practices that relied largely on paper or digital transactions, the direct sale of gold highlights the urgent need for liquidity.
Since the beginning of 2026, Russia has reportedly sold approximately 14 tonnes of gold within just two months. This includes the release of around 300,000 ounces in January and an additional 200,000 ounces in February. With international gold prices surpassing $5,000 per ounce, the timing of these sales has helped Russia maintain its foreign exchange reserves at over $800 billion.
However, analysts view this strategy as a short-term solution. Gold reserves are traditionally considered a nation’s financial safeguard, and their liquidation may signal underlying economic vulnerability. Although Russia still holds more than 2,000 tonnes of gold, continued financial strain driven by prolonged conflict could lead to a faster depletion of these reserves.
