Russia Puts Giant State Diamonds Up for Auction After Record Gold Selloff

After drawing down its gold reserves to support strained state finances, Russia is now opening its diamond vaults, putting large rough stones from the national stockpile up for auction as the cost of its war continues to mount.

Russia’s Finance Ministry announced on July 24 that it will hold an open domestic auction in Moscow on September 9 for natural diamonds weighing 10.8 carats (2.16 grams) or more.

The stones come from Russia’s State Fund of Precious Metals and Precious Stones, commonly known as Gokhran. The state institution operating under the Finance Ministry will act as the seller.

The auction will offer the diamonds in separate lots. Successful bidders will receive the right to sign purchase agreements for the stones.

Prospective buyers must first sign a deposit agreement and provide 200,000 rubles, or about $2,580, to participate.

The announcement follows Russia’s accelerated sale of gold from its reserves. The central bank reduced its holdings for six consecutive months during the first half of 2026 as Moscow sought liquid assets that remained accessible despite the freezing of much of its foreign-currency reserves abroad.

The new auction suggests the government is looking beyond gold and increasingly turning to other state-held valuables as it searches for additional funds amid mounting budget pressure and continued war spending.

Earlier, reports emerged that Russia’s central bank has reduced its gold holdings for a sixth consecutive month, selling 43.5 metric tons since January in the largest six-month drawdown recorded in at least a quarter-century.

The sales came as Russia’s federal budget deficit approached 6 trillion rubles (more than $76 billion) during the first half of the year.

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