Russia Initiates Sale of Physical Gold Reserves to Fund Budget
Russia's Central Bank has begun selling physical gold from its reserves for the first time as part of a move to fund the state budget and stabilize the ruble. The sales, which began in November 2025, are being conducted on the domestic market in a similar fashion to how Chinese yuan is traded. The Finance Ministry has sold off 232.6 tonnes of gold from the National Wealth Fund (NWF) to cover budget shortfalls, which has dropped the fund's holdings to 173.1 tonnes as of November , 2025.
Here is what is known about the situation:
The sale is not of
$PAXG . The search results confirm Russia is selling physical gold, not the PAXG gold-backed cryptocurrency. Russia has also previously held more gold than US dollars in its international reserves.
Budget funding. The primary purpose of the sales is to fund the war budget, as the liquid assets in the NWF have shrunk significantly.
Market diversification. Analysts believe that using gold for these operations helps spread pressure across different markets and diversify reserves, rather than solely relying on yuan transactions.
Increased domestic liquidity. The Central Bank states that the increased liquidity in the domestic gold market has allowed it to conduct these sales.
Shift from virtual to physical sales. In the past, gold transactions from the NWF were largely virtual, involving the government selling gold to the Central Bank. The latest sales mark a shift to selling physical gold.
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