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Business Desk – Russia’s Gold Sale Details: On one hand, emerging economies like India, China and Poland are continuously buying gold to increase their reserves. On the other hand, Russia is a country that has sold 22,000 kg of gold in 2026 alone.

This trend is clearly visible from 2025 onwards. However, it is very important to understand the root causes behind this situation. Russia has 2.6 times more gold reserves than India. Apart from this, Russia consistently remains at second or third place in the global list of gold producing countries.

Why is Russia continuously selling gold?

Everyone knows about the ongoing conflict between Russia and Ukraine. This war has had a great impact on Russia’s economy, due to which its budget deficit has increased significantly. To reduce this deficit, Russia is continuously withdrawing gold from its reserves and selling it.

Initially he used to sell gold only on paper (through financial instruments). However, in 2025 it sold physical gold for the first time. Let us understand the reasons in detail:

Budget deficit increased due to war

During the conflict with Ukraine, Russia has had to incur huge military expenses. As a result, the budget deficit will increase manifold in 2025 alone.

Impact on earnings from oil and gas

Earlier, Russia used to earn a lot from the export of its oil and gas. However, due to Western sanctions, earnings from these sectors have almost halved. Nevertheless, amid ongoing tensions in the Middle East, the United States has temporarily relaxed some of these restrictions.

impact on the ruble

The ruble is the national currency of Russia. Due to excessive spending on war, the ruble is continuously weakening. As a result, the government is selling gold in an attempt to strengthen and stabilize the currency.

rising prices of gold

At the end of January, especially on January 29, the prices of gold and silver reached their highest level till date. This rise continued till the beginning of February. Russia took great advantage of this trend and sold its gold reserves at these high prices.

However, it is also worth noting that while Russia is selling gold, it is doing so domestically. That means selling within its own limits. In this way it is attracting more and more rubles from the public.

This strategy ensures that in case of war or similar crises, the country does not face shortage of currency to meet expenses like weapons. In fact, most of the country’s gold is effectively circulating back into its own economy.

Countries including India are buying gold

In the last few years, many countries including India, China and Poland. Central banks have significantly increased the amount of gold kept in their reserves. Due to increasing geopolitical tensions and trade disputes, many countries like China are now rapidly buying gold in an attempt to reduce their dependence on the US dollar.

Another important reason for this increasing purchase of gold among countries is that America had frozen Russia’s assets worth about $300 billion. Taking a lesson from this incident, countries are actively strengthening their gold reserves to protect themselves from a similar situation. We are reducing our dependence on the dollar.

For Russia, buying gold is an attempt to reduce the increasing economic pressure on its domestic economy. On the other hand, for other countries, buying gold is a sign of their economic strength and their desire to be less dependent on the US dollar.