The Russian Central Bank confirmed to Interfax news agency on November 20 that Moscow has begun selling physical gold from its reserve to cover budget deficits - a move that has long been "breaking the ban".
Previously, government gold-related transactions were mainly accounting: The Ministry of Finance sold gold from the National Assets Fund (NWF) to the Central Bank, but the gold was still in the warehouse, only circulating on the books.
This time, the scale and nature of the transaction have changed. The Russian currency operator admitted that it is actually selling gold to the domestic market, similar to the way it sells assets in yuan.
The central bank did not announce the start date or the amount of gold sold, but this move is seen as Russia's way of using its reserve fund to finance conflict costs.
Before the outbreak of the Ukrainian conflict, the Russian National Assets Fund owned about 405.7 tons of gold. To date, the Ministry of Finance has liquidated nearly 57% of that figure - equivalent to 232.6 tons - to support state spending.
As of November 1, 2025, the amount of gold in the fund was only 173.1 tons, while the total assets of NWF (including the yuan) had fallen from 113.5 billion USD to 51.6 billion USD. This reserve ratio, compared to Russia's GDP, has fallen fourfold.
Analysts believe that selling real gold is part of a larger strategy: Pumping more foreign currency into the market to save the ruble. Defense Finance Global (FFG) expert Vladimir Chernov said similar yuan sales this year have reached $30 billion, and could add about $15 billion in 2026. This shows that Russia is relying more on reserves to maintain financial stability.
Although Russia still has more than 2,300 tons of gold in total national reserves - the fifth largest in the world - having to sell physical gold is a strong signal that the economy during the conflict is under great pressure.
This pressure is further increased as oil and gas revenue decreased by 27% compared to the same period, due to tightening sanctions, decreasing world oil prices and the stronger ruble. In that context, gold - once considered Russia's "last shield" - now also has to be brought to the market to maintain the budget and stabilize the currency.
World gold prices are currently trading around $4,050/ounce.
Regarding domestic gold prices, SJC gold bar prices are trading at 148.3 - 149.8 million VND/tael (buy - sell).
The price of 9999 Bao Tin Minh Chau gold rings is traded at 147 - 150 million VND/tael (buy - sell).
