20 January 2026

For the third year in a row, the Russian government has been selling gold from the National Welfare Fund to replenish the federal budget, finance state banks, and pay for megaprojects.

Between 2022 and 2025, the amount of gold on the NWF’s balance sheet decreased by 71%, according to  data from the Ministry of Finance. As of January 1, the fund held 160.2 tonnes of gold in unallocated accounts at the Central Bank, compared to 554.9 tonnes as of May 2022.

In 2023, the NWF’s gold reserves shrank by 196 tonnes, or 35%; in 2024, they doubled again, or 171 tonnes; and by the end of last year, they had lost an additional 19 tonnes.

The Ministry of Finance sold gold from the NWF almost every month: 8.2 tonnes in January, 4.4 tonnes in February, 6.4 tonnes in March, and 29 tonnes in April-May. In June, 72.4 tons of gold purchased in 2024 were added to the fund. However, more than half of this reserve was immediately sold off: 32.8 tons in July, another 6 tons in August-September, and 12.8 tons in December.

The total volume of the NWF’s liquid assets, which in addition to gold include Chinese yuan, stood at 4.1 trillion rubles as of early January. Last year, for the first time since the start of the war, the Russian government’s reserves increased slightly—by 350 billion rubles—but they fell by almost 60%, or 5.6 trillion rubles, relative to pre-war levels.

The Ministry of Finance budgeted zero expenditures from the NWF for the 2026 budget, hoping to preserve the remaining reserves it had accumulated over the years thanks to excess oil revenues. However, sanctions imposed by the Donald Trump administration disrupted the government’s plans: the average price of Russian oil fell to $39 instead of the $59 budgeted, forcing the authorities to open up the fund again.

From January 16 to February 5, to offset lost oil and gas revenues, the Ministry of Finance is selling 12.8 billion rubles worth of foreign currency and gold from the National Welfare Fund per day—a record-breaking rate for such operations. If oil prices and the ruble exchange rate remain at current levels, VTB analysts estimate that 2.5 trillion rubles—or 60% of the remaining funds—will be withdrawn from the National Welfare Fund by the end of the year .

Last year, oil and gas budget revenues fell by a quarter, reaching their lowest level since the pandemic, while the deficit hit a new record, five times exceeding the fiscal plan at 5.7 trillion rubles. In the 2026 budget, the government has budgeted for a deficit reduction to 3.8 trillion rubles by increasing VAT and taxes on small businesses. However, given current oil prices, this plan is unlikely to materialize: the budget gap will likely remain at approximately 5-5.5 trillion rubles, Gazprombank predicts .

Budget revenues are being pressured by declining oil exports due to problems with maritime shipping and reduced demand for Russian hydrocarbons due to sanctions, notes Natalia Milchakova, leading analyst at Freedom Finance. “If oil prices continue to decline and the discount between Urals and Brent continues to widen, it’s possible the government will continue to raise taxes on households and businesses,” the expert warns.

https://ru.themoscowtimes.com/2026/01/20/kreml-rasprodal-tri-chetverti-zapasov-zolota-izfnb-chtobi-napolnit-voennii-byudzhet-a184995