Russia earned as much as $1.68 billion by selling 300,000 ounces of gold in January, taking advantage of record-breaking prices.

Russia Reduces Gold Reserves Amid Record-High Prices

According to recent figures from the Central Bank of Russia (CBR), the country made a notable sale of gold from its reserves in January, capitalizing on unprecedented price levels that surpassed $5,500 per ounce.

The CBR disclosed on Friday that 300,000 ounces were sold, bringing Russia’s total gold reserves down to 74.5 million ounces. This marks the first reduction in the nation’s gold holdings since October.

During January, gold prices averaged close to $4,700 per ounce and reached a peak of $5,600 per ounce. As a result, the sale likely generated between $1.41 billion and $1.68 billion in revenue.

Despite the reduction in physical gold, the overall value of Russia’s gold reserves climbed by 23% in January, reaching $402.7 billion, thanks to the surge in gold prices.

Russia’s Precious Metals Trade with China Expands

Bloomberg reported in July that Russia’s exports of precious metals to China nearly doubled in value during the first half of 2025.

According to Bloomberg, citing Trade Data Monitor and Chinese customs statistics, “Chinese imports of Russian precious metal ores and concentrates, including gold and silver, soared by 80% to $1 billion compared to the same period last year.” The report also noted that bullion prices have surged approximately 28% this year, fueled by increased geopolitical uncertainty, trade disputes, and strong demand from central banks and exchange-traded funds.

Russia’s Role in the Global Gold Market

Russia stands as the world’s second-largest gold producer, trailing only China, with annual production exceeding 300 tonnes. While the Russian central bank was once among the top sovereign gold buyers globally, its acquisitions have slowed since the 2022 escalation of the conflict in Ukraine. Meanwhile, the People’s Bank of China remains a leading purchaser among central banks.

Domestic and International Demand for Russian Gold

Although the volume of Russia’s gold exports to China has increased, much of the rise in export value is attributed to the gold price rally over the past year, with spot prices climbing nearly 43% in the last 12 months.

Russian gold miners are also meeting growing domestic demand, as retail purchases of gold in Russia reached a new high last year. In 2024, Russian consumers bought 75.6 tonnes of gold, accounting for about a quarter of the nation’s annual output, as individuals sought to safeguard their savings with precious metals.

Growth in Other Precious Metals

The recent surge in prices for other precious metals has further benefited Russia’s leading mining companies. The report highlights that “MMC Norilsk Nickel PJSC, a major global supplier of palladium and platinum, has significantly increased its exports to China this year.” Prices for palladium and platinum have jumped by 38% and 59%, respectively, in 2025.