russia Plans to Sell $19 Billion Worth of Gold to Cover Its Budget Deficit

russia’s economy entered 2026 weaker than ever since the start of the full-scale invasion. The 24% drop in oil and gas revenues in 2025 to $106 billion forced the kremlin to revise the budget three times, increasing its deficit fivefold. While in January last year it was forecast at $15 billion, by the end of the year this figure exceeded $75 billion.

This was stated by First Deputy Head of the Foreign Intelligence Service of Ukraine Oleh Luhovskyi in an interview with Ukrinform.

“As a result of the constant use of the National Wealth Fund’s reserves to cover the budget deficit, its liquid assets have decreased threefold during the war. The kremlin has already started selling off its reserves of gold and precious metals. It has planned to use almost $19 billion of these reserves in the first half of the year to cover the budget deficit,” said the First Deputy Head of the Foreign Intelligence Service of Ukraine.

He also added that the Service has recorded an almost $10 billion increase in wage arrears to employees of even strategic enterprises and those of military-industrial complex. Compared to 2024, this figure has increased by 88%. According to the Foreign Intelligence Service of Ukraine’s forecast, in 2026, russia’s economy will face an increased risk of entering a recession amid rising inflationary pressure, a narrowing tax base, and the growth of the “shadow” sector.

Read more about the situation with the russian economy in the full interview.