Russia’s gold reserves have exceeded $400bn for the first time in history, bolstered by soaring prices and state efforts to reduce reliance on Western currencies, Vedomosti reported on February 6, citing data from the Central Bank of Russia.

According to the publication, the value of gold holdings in Russia’s international reserves reached $403.4bn at the end of January, a record high. This figure represents nearly 45% of the country’s total foreign exchange and gold reserves, which stood at $892bn as of January 31, according to central bank data. The remainder includes holdings in foreign currencies, Special Drawing Rights (SDRs), and assets held with the International Monetary Fund.

“The growth in the value of gold reserves is driven primarily by global price increases, but also reflects Moscow’s strategic focus on hard assets amid persistent sanctions,” Vedomosti noted.

Russia has sharply increased the share of gold in its reserve portfolio since 2014, when Western sanctions were first imposed following the annexation of Crimea. The trend accelerated after the full-scale invasion of Ukraine in February 2022, when approximately $300bn of Russia’s foreign assets held abroad were frozen by Western central banks. In response, the Kremlin shifted reserve accumulation away from dollar- and euro-denominated instruments toward gold, yuan, and domestic holdings.

In 2023 alone, the price of gold rose nearly 13%, amid rising geopolitical tensions and strong central bank demand globally. According to the World Gold Council, Russia is among the world’s largest official sector gold holders, with over 2,300 tonnes in physical reserves, stored primarily within the country. These holdings are no longer published monthly by the Central Bank of Russia, which ceased detailed reporting in 2022 citing “financial stability concerns.”

“The focus on gold reflects a strategy of insulation,” said Moscow-based economist Andrei Yakovlev. “In a sanctions environment, gold is seen as untouchable — it cannot be frozen in foreign accounts and retains liquidity.”

The central bank does not disclose gold purchasing volumes or sources, but analysts believe that a significant portion is acquired from domestic producers, often at below-market rates through state-affiliated intermediaries. Russia is the world’s second-largest gold producer after China, according to the U.S. Geological Survey.

While gold cannot fully replace the international role of reserve currencies, its growing prominence in Russia’s reserves underscores a continued shift toward financial self-sufficiency. “It is not a question of trust in gold,” said one analyst quoted by Vedomosti, “but a reflection of lost trust in Western financial systems.”