The latest data from the Central Bank of Russia reveals that sovereign gold holdings have contracted to 2,282 tonnes, or 73.4 million troy ounces. This decline reflects a broader trend of liquidation, with the central bank selling metal to domestic financial institutions to offset a budget deficit that reached 4.6 trillion rubles by the end of March. Analysts suggest that these liquidations are essential to compensate for modest oil and gas revenues, with some proceeds reportedly converted into yuan to bolster foreign currency liquidity.

This shift represents a sharp reversal for an institution that spent over two decades as a aggressive buyer, accumulating 1,900 tonnes between 2002 and 2025. While the central bank is liquidating its holdings, domestic retail demand has surged, with gold transaction volumes on the Moscow Exchange climbing more than 350% compared to early 2025. As Russia continues to navigate the economic impact of international sanctions and defense expenditures, analysts like Natalia Milchakova of Freedom Finance Global expect these sales to persist. The current strategy aligns with the broader fiscal pressures facing the state, as the central bank balances the need to cover rising defense costs against the preservation of national currency stability.