Russia has benefited from more than $216 billion in profits from rising gold prices, which helped offset the loss of assets frozen in the EU after the invasion of Ukraine.
This is reported by Bloomberg.
According to the Bank of Russia, the countryʼs international reserves reached $755 billion at the end of 2025, of which $326.5 billion was gold. The Russian Finance Ministry expects the price of gold to continue to rise and could exceed $5 000 per ounce.
Since 2022, the share of gold in total reserves has increased from 21% to 43%, while the volume of foreign exchange and other assets has decreased by about 14%. Although assets blocked abroad remain inaccessible, the increase in gold prices is offsetting most of Russiaʼs financial losses.
Russia is the worldʼs second-largest gold producer, producing more than 300 tons of the metal each year. However, sanctions have banned its gold from the London Stock Exchange, making it difficult to sell large quantities on the global market.
The Bank of Russia began partially using reserves only at the end of last year to cover the budget deficit through the sale of assets of the National Welfare Fund.
Analysts note that the rise in gold prices has become beneficial for Russia due to global economic risks and inflation, as well as a decline in confidence in world reserve currencies.
In recent years, the growth in gold prices has reached record levels: in 2025 alone, the metal rose by about 65% — the fastest annual increase since 1979. This significantly increased the value of official reserves, even without additional purchases.
What is known about the reparation loan?
The possibility of providing Ukraine with a €140 billion loan using frozen Russian assets has been discussed since early October. At that time, EU leaders were unable to agree on the loan — Belgium opposed it, and France and Luxembourg were concerned about the legal consequences.
The European Commission officially presented the idea of a reparations loan on December 6, and its details were revealed by Politico. This loan is to consist of €165 billion: €25 billion of frozen Russian state assets held in private bank accounts across the European Union, and €140 billion held in the Belgian financial institution Euroclear. The money is planned to be distributed as follows:
- €115 billion will be allocated to finance Ukraineʼs defense industry;
- €50 billion will cover Ukraineʼs budget needs;
- €45 billion will be used to repay the loan that the G7 provided to Ukraine in 2024.
Belgium is opposed to the loan, worried that Russia would sue it if the plan goes ahead, as the frozen assets are held in Belgiumʼs Euroclear. The Belgian prime minister has asked the other 26 EU countries to guarantee coverage of the legal and financial risks.
On December 12, the Council of the European Union decided to freeze Russian assets indefinitely. Thus, the EU banned any transfer of frozen Russian assets to Russia. It also allows these funds to be used for the benefit of the reparations loan to Ukraine.
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