Russia sold significant gold reserves in 2026, dropping holdings to 73.4 million troy ounces to offset budget deficits caused by soaring defense spending for the war in Ukraine.
Russia's budget deficit reached 2.5% of GDP in H1, while tensions rise between Iran and the US over alleged plots. Updates on the Ukraine war include Patriot missile production plans, drone attacks, and NATO discussions. Other news covers Iran's farewell ceremonies, Israel's actions in Gaza, and Turkey's S-400 sales.
Russia's federal budget deficit hit 5.73 trillion rubles ($75 billion) in the first half of 2026, a 2.35 trillion ruble increase from the previous year. The Finance Ministry attributes the rise to advance financing of expenditures, despite a 5.8% increase in revenues.
ExxonMobil expects a $5 billion profit increase in Q2 due to rising oil prices and refining margins. Kuwait's budget deficit widened to $23.1 billion amid falling oil revenues. South Korean stocks fell sharply, led by semiconductor companies, amid AI spending concerns.
Queensland's Treasurer David Janetzki aims to prevent a credit rating downgrade despite a budget deficit and projected borrowings exceeding $200bn in three years. The budget forecasts a surplus in 2029-30, after years of deficits, boosted by higher coal royalties.
The IMF urged Britain to continue cutting government borrowing amid concerns over a Labour leadership challenge. It praised Chancellor Rachel Reeves for balancing deficit reduction and growth spending, upgrading UK growth forecasts.
Russia's central bank has sold 21.8 tonnes of gold in 2026 to fund its widening budget deficit, which reached $61.2 billion by end-March. Gold reserves stand at 2,304.76 tonnes as of April 1, down 6.22 tonnes in March alone. Domestic gold trading volumes surged 350% year-on-year to 42.6 tonnes in March, with the value rising 500% to $7.1 billion as consumers turned to precious metals to protect savings amid economic strain in the fifth year of the Ukraine war.
