Russia is benefiting greatly from the long-term gold price increase cycle, in the context that most of its foreign currency and stock reserves are still being frozen by the West.
According to Bloomberg's calculations, the value of gold reserves of the Central Bank of Russia (CBR) has increased by more than 216 billion USD since February 2022 - the time Moscow launched a military campaign in Ukraine.
It is noteworthy that throughout this period, the Central Bank of Russia hardly increased large-scale gold purchases, nor significantly sold reserves of precious metals, although the country was cut off from access to many types of assets and foreign currencies due to sanctions.
Last December, the European Union (EU) approved a decision to extend the freeze of about 210 billion euros (equivalent to 244 billion USD) of Russian sovereign assets located in the bloc. However, the sharp increase in gold prices has helped Russia recover most of the "losed financial capacity", although it cannot directly recover the frozen assets.
Unlike cash or securities frozen in Europe - which cannot be bought or pawned - gold is still an asset that can be converted into money if needed. This gives Russia an important financial "cushion" in the context of being isolated from the Western financial system.
Russia is currently the second largest gold mining country in the world, with a production of more than 300 tons per year.
World gold prices have increased sharply in the past 4 years, supported by large buying demand from central banks, concerns about prolonged inflation, increased geopolitical tensions and the trend of seeking safe haven assets in the context of trade wars and economic instability. In 2025 alone, gold prices increased by about 65% - the strongest increase since 1979.
Thanks to that, gold reserves of many countries increased in value significantly even when not buying more. With Russia, this impact is particularly clear. Data released by the Central Bank of Russia shows that by the end of last year, the country's total international reserves reached 755 billion USD, of which 326.5 billion USD was gold. Since then, world gold prices have continued to increase by more than 8%, trading at 4,790.35 USD/ounce at 7:15 am on January 22 Vietnam time.
The Russian Ministry of Finance forecasts that gold prices will continue to rise in the long term, possibly reaching 5,000 USD/ounce or higher.
The Central Bank of Russia only started using a small portion of gold reserves from the end of last year. Gold holdings decreased by 0.2 million ounces, to 74.8 million ounces, mainly related to the Ministry of Finance selling assets of the National Welfare Fund to offset the budget deficit.
From February 2022 to December 2025, Russia's gold reserves have more than doubled, while foreign currency and foreign asset reserves have decreased by about 14%. The proportion of gold in total reserves soared to 43%, compared to only 21% before the war.
Russia has no longer announced details of foreign exchange reserves since the conflict broke out. As of January 1, 2026, non-gold assets, including foreign currencies, reached about 399 billion USD. Moscow estimates that about 300 billion USD of Russian sovereignty assets are being frozen abroad.
