Russia's central bank sells gold for a second straight quarter to fund its war deficit

Second straight quarter as top seller

Russia's central bank sold 18.66 tonnes of gold in the third quarter of 2026, making it the largest seller among central banks for a second consecutive quarter, according to World Gold Council data cited by The Moscow Times. Central banks worldwide bought 321.2 tonnes over the same period, 42% more than a year earlier. Russia was one of only a few institutions reducing their holdings, and its sales far outweighed those of the others. Kyrgyzstan's central bank sold 0.95 tonnes, while Germany, Singapore and Mexico sold 0.19, 0.08 and 0.02 tonnes respectively.

Russia18.66

Kyrgyzstan0.95

Germany0.19

Singapore0.08

Mexico0.02

Russia

18.66 tonnes

Kyrgyzstan

0.95 tonnes

Germany

0.19 tonnes

Singapore

0.08 tonnes

Mexico

0.02 tonnes

Data from the article text

Buyers led by China and Poland

The People's Bank of China was the largest buyer, adding 63.14 tonnes to its reserves. The Polish central bank bought 40.45 tonnes in the same quarter, while Uzbekistan and Kazakhstan added 14.45 and 13.52 tonnes. Those purchases ran alongside the Russian sales, so the same quarter shows gold leaving one reserve pool while entering several others. Some Russian gold is also reaching China. The Moscow Times reported that about 100 tonnes of gold of Russian origin entered Hong Kong between January and July 2026, roughly three times the volume of the same months a year earlier.

China63.14

Poland40.45

Uzbekistan14.45

Kazakhstan13.52

China

63.14 tonnes

Poland

40.45 tonnes

Uzbekistan

14.45 tonnes

Kazakhstan

13.52 tonnes

Data from the article text

Budget deficit behind the sales

The sales are carried out as 'mirroring' operations that match transactions by the Finance Ministry, which has drawn on gold from the National Wealth Fund to cover the budget gap. The central bank has been selling gold for ten consecutive months. The federal deficit reached 7.3 trillion rubles this year, about $89.7 billion, and has exceeded 22 trillion rubles, or $270.8 billion, since the start of the war in Ukraine. In October, Ukraine's foreign intelligence service said 65 Russian regions were preparing spending cuts for 2027-2029, with combined regional deficits forecast at around $10.5 billion.

Reserves and the 1998 comparison

Russia's gold reserves fell by 21.77 tonnes in the previous quarter. The central bank's own statistics show a drop of 2 million troy ounces, about 62 tonnes, between December and September. The Moscow Times describes the current sales as the largest reduction in Russian gold holdings since 1998, when the government declared a default on public debt and the country was hit by a financial crisis. In that episode the central bank sold 118 tonnes in three months. Some of that gold was later bought back, and reserves ended the year down about 50 tonnes. Before the invasion of Ukraine, in early 2022, Russia held roughly 2,300 tonnes, the fifth-largest holding among central banks.