Russia sells 6.2 tonnes of gold in September as bullion reserves fall to lowest level since 2019

Last month’s bullion sales lowered Russia’s sovereign gold holdings to 72.8 million troy ounces, or 2,264 tonnes, their lowest level since the end of 2019.

Russia is in the midst of its largest sustained drawdown in gold reserves since the financial crisis of 1998, with the country liquidating around 62 tonnes of the precious metal since December 2025 as the government struggles to finance a ballooning federal budget deficit.

The Bank of Russia has now reduced its gold holdings for ten consecutive months, a sharp reversal of the accumulation strategy Moscow pursued in the years before its full-scale invasion of Ukraine in 2022. Military and security expenses are projected to account for 38% of total federal spending in 2026.

Russia’s remaining gold reserves are worth around $301.6 billion as of the end of September, compared with $333.5 billion a month earlier.

In July, Bloomberg reported that Russia’s precious metals exports to China nearly doubled in value during the first half of 2025.

“Chinese imports of Russian precious metal ores and concentrates, including gold and silver, jumped 80% to $1 billion from the same period a year earlier,” Bloomberg reported at the time, citing data from Trade Data Monitor and China’s customs office. “Bullion prices have climbed about 28% this year, boosted by heightened geopolitical risks and trade tensions, alongside buying by central banks and exchange-traded funds.”

Russia is the world’s number-two gold producer – second only to China – with an annual output of over 300 tonnes. Russia’s central bank was also one of the world’s biggest sovereign gold buyers, but its purchases have fallen off since the full-scale invasion of Ukraine in 2022. The People’s Bank of China continues to be among the leading central bank buyers in recent years.

Russia’s gold exports to China are up in volume terms, but much of the difference is also due to the gold price rally over the last 12 months, with spot prices rising nearly 43% over the last 12 months.

The country’s gold miners are also supporting rising domestic retail demand, which hit a record high last year as Russians clamored for precious metals to protect the value of their savings. Russian consumers purchased 75.6 tonnes of gold in 2024, representing approximately 25% of the country’s annual production.

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