(MOSCOW) – The Russian Ministry of Finance has revealed a drastic reduction in national gold reserves as the Kremlin struggles to maintain its federal budget during the fourth year of its full scale invasion of Ukraine. Official data indicates that the volume of gold held within the National Wealth Fund (NWF) plummeted by 71 per cent between May 2022 and January 2025. This liquidation is being utilised to sustain the military campaign and support state owned banks currently facing a liquidity crisis.
The economic pressure stems from a significant drop in the price of Russian Urals crude oil, which has fallen to an average of 39 US Dollars ($39) per barrel. This market reality sits in stark contrast to the 59 US Dollars ($59) price point assumed in the federal budget. To compensate for the shortfall in oil and gas tax receipts, the ministry began selling gold and foreign currency at an aggressive rate of 12.8 billion Russian Rubles ($167.7 million) per day from 16 January to 5 February 2026. This represents the fastest pace of asset sales since the invasion began.
Analysts at VTB Bank warn that if these market conditions persist, the Russian dictator may be forced to spend up to 2.5 trillion Russian Rubles ($32.7 billion) from the NWF throughout 2026. Such expenditure would exhaust approximately 60 per cent of the remaining liquid reserves. Domestically, the Russian Federation is grappling with soaring inflation and a rising number of individual bankruptcies. Reports suggest actual inflation is nearly triple the official figures, with residents facing price increases 2.5 times higher than those broadcast on state media.
The financial strain is further evidenced by the deteriorating state of Russian infrastructure. While the Kremlin continues to fund spy drone operations over Ukrainian cities, internal services in regions such as Murmansk and Kamchatka are collapsing due to negligence and lack of funding. State owned giants like Lukoil have reportedly requested federal support, further draining the dwindling gold reserves. Despite the Russian dictator’s attempts to project stability by avoiding public appearances, the rapid depletion of the NWF highlights an increasingly unsustainable economic trajectory for the Russian Federation.
