After Gold, Diamonds: Kremlin Sells Off State Reserves to Fund the War

Russia's Ministry of Finance has announced an open domestic auction of natural diamonds from the State Fund for Precious Metals and Precious Stones — better known as Gokhran — to be held in Moscow on 9 September. The lots will consist of stones weighing more than 10.8 carats (2.16 grams), each sold separately, with the Ministry of Finance itself acting as seller.

The decision to auction off state diamond reserves comes after Russia's Central Bank cut its gold reserves in the first half of 2026, selling 43.5 tonnes of gold since the start of the year — the largest six-month drawdown in the country's gold holdings in 25 years. As of July 2026, Russia holds 2,282 tonnes of gold.

Analysts believe the upcoming diamond auction is a sign that, having already depleted part of its gold reserves, Moscow is now being forced to sell off other state assets to secure liquid funds.

The move comes amid mounting pressure on the Russian budget from the enormous cost of the war against Ukraine. According to available data, Russia's budget deficit for the first half of the year reached almost six trillion roubles (roughly 1.6 trillion Czech crowns), Reuters reports.

The weight of precious stones is traditionally measured in carats: one metric carat equals 0.2 grams, meaning a one-gram stone equals five carats. The unit's origins trace back to carob tree seeds, which — thanks to their remarkably consistent weight — were long used in Arabia and Persia as reference weights for measuring precious stones.

Source: novinky.cz