Russia launched 21 ballistic missiles against Kyiv in three successive waves overnight on 21–22 October, striking residential buildings, energy facilities and transport infrastructure just hours after President Vladimir Putin held peace negotiations with US presidential envoy Steve Witkoff in St Petersburg.

Ukrainian President Volodymyr Zelenskyy confirmed on Thursday morning that at least two people had been killed and 34 injured, including five children, in Russian attacks affecting 12 Ukrainian regions. The capital sustained extensive damage, with strikes reported against railway and metro infrastructure, shopping centres, industrial premises and a monastery.

The bombardment followed a three-hour meeting between Witkoff and Putin on Wednesday, during which the Russian president indicated his willingness to resume trilateral negotiations involving Moscow, Washington and Kyiv. The Russian attacks continued despite the diplomatic initiative, prompting Zelenskyy to call for renewed international pressure on the Kremlin.

Kyiv Under Three Waves of Ballistic Missiles

In a statement published on Telegram, Zelenskyy said Russian forces had launched three waves of ballistic missiles against the Ukrainian capital, causing numerous direct hits and widespread destruction.

The Ukrainian president referred sarcastically to Russia’s supposed humanitarian intentions, an apparent reference to Witkoff’s description of Putin as a humanitarian during their meeting the previous day.

Emergency services were deployed across several districts of Kyiv, where residential and commercial buildings suffered damage. Part of the capital’s metro infrastructure on the Southern Bridge was affected, disrupting traffic, while a strike on an ambulance station in the Pecherskyi district damaged six emergency vehicles. No medical personnel were injured at that location.

According to Ukrainian military and emergency service reports, the overnight assault also involved 210 attack drones and several types of missiles, including Iskander-M, S-400, Zircon and Oniks weapons.

By Thursday morning, Ukrainian air defences had intercepted or suppressed 181 drones. Russian weapons struck 32 locations, while debris from intercepted drones fell at eight others.

The assault followed several consecutive days of Russian attacks against Kyiv, including earlier strikes on hospitals, residential buildings and the capital’s transport network.

Witkoff’s Meeting with Putin

The timing of the latest bombardment placed renewed scrutiny on Washington’s diplomatic engagement with Moscow.

On 21 October, Witkoff met Putin at the Konstantin Palace in St Petersburg, accompanied by Russian officials, including Kirill Dmitriev, the Kremlin’s representative for international economic cooperation. The discussions lasted approximately three hours.

The meeting followed talks in Oslo on 20 October, where Witkoff and Jared Kushner met Zelenskyy alongside Norwegian Prime Minister Jonas Gahr Støre and Finnish President Alexander Stubb.

Following the St Petersburg meeting, Witkoff described the discussions as constructive and indicated that negotiations would continue at the technical level between representatives of the United States, Russia and Ukraine.

Putin reportedly expressed agreement in principle to restarting trilateral negotiations, potentially during the first half of November. However, no agreement on a ceasefire or suspension of Russian attacks was announced.

The meeting also attracted controversy after Witkoff praised Putin as a humanitarian following the release of Stephen Hubbard, a 74-year-old American citizen who had been detained in Russia for more than four years.

The remarks prompted criticism from Republican lawmakers in Washington, who questioned the characterisation of the Russian president while Moscow continued its military campaign against Ukraine.

Zelenskyy Calls for Pressure Rather Than Diplomatic Concessions

Zelenskyy characterised the overnight missile attack as evidence that Russia’s participation in negotiations had not produced any substantive change in its conduct.

He argued that diplomatic efforts to end the war should continue but must be accompanied by measures capable of altering Moscow’s military calculations.

Those measures, according to the Ukrainian president, include stronger air defence capabilities, faster deliveries of interceptor missiles, the ability to destroy Russian ballistic missile launchers and continued economic sanctions.

The latest attacks also place Ukraine’s air defence requirements firmly within the ongoing negotiations with Washington. Kyiv has repeatedly sought additional Patriot missiles and more reliable advance warning of Russian ballistic launches, particularly as repeated strikes place increasing demands on its interception capabilities.

For the Trump administration, the immediate question is whether Russia’s stated willingness to negotiate can produce verifiable commitments to reduce hostilities.

The Kremlin has offered the prospect of further talks without announcing a halt to its offensive operations. Kyiv, meanwhile, continues to face missile and drone attacks against civilian infrastructure even as discussions concerning a possible settlement proceed.

The events of 21–22 October leave Washington’s diplomatic initiative moving forward against the background of an expanding Russian aerial campaign, with no indication that Moscow intends to suspend its attacks while negotiations continue.

Missiles struck Kyiv in the early hours of Thursday, a Reuters witness said, and Ukraine sent hundreds of drones towards Moscow overnight, as the two sides kept up a barrage of attacks despite the latest US mediation attempts to end the war.

The Russian strikes wounded 15 people and damaged subway infrastructure on the Southern Bridge over the Dnipro River in the Ukrainian capital while also restricting traffic there, Kyiv authorities said. The strikes followed another attack on the city on Wednesday evening that wounded six people.

Russian strikes hit Ukrainian infrastructure

A Russian strike killed a woman and injured another four people in the Kharkiv region in Ukraine’s northeast, Regional Governor Oleh Syniehubov said on Telegram.

A drone also hit energy infrastructure in the Kremenchuk area in the Poltava region, a local official said on Telegram, without giving details.

Located on the Dnipro River, Kremenchuk is a major industrial hub and home to one of Ukraine’s biggest oil refineries. The area has been repeatedly hit by Russian strikes, including a 2022 attack on a crowded shopping mall that killed at least 21 people.

Hundreds of drones target Moscow

In Russia, two people were wounded near Moscow after 630 drones were sent towards the capital during the night, Mayor Sergei Sobyanin said on Telegram. Most of the drones were downed at long range, he added.

In the city of Lipetsk – home to a major steel plant some 400 km (250 miles) south of Moscow – a man was injured as drones hit apartment buildings and a medical facility, Governor Igor Artamonov said on the Telegram app.

Russia invaded Ukraine in 2022 after annexing the Crimea peninsula from its southern neighbour eight years earlier, locking the two nations into the deadliest conflict on the European continent since World War Two.

US pushes for renewed peace talks

The latest strikes come after US presidential envoy Steve Witkoff held talks this week with Ukraine’s President Volodymyr Zelenskiy and Russia’s President Vladimir Putin to mediate an end to the conflict.

Zelenskiy said on Wednesday that Ukraine supported a US proposal for three-way talks with Russia and the United States at the level of negotiators to be held as soon as possible, and the Kremlin said Putin has agreed to resume US-mediated peace talks with Kyiv as soon as next month.

Russia freed an American imprisoned for the last four years. Stephen Hubbard was captured in Eastern Ukraine and convicted of fighting against Russia. The 74-year-old retired teacher was reportedly freed without a swap. U.S. special envoy Steve Witkoff greeted Hubbard in St. Petersburg. He also met with the Russian president and praised Putin in unusually glowing terms. Nick Schifrin reports.

According to reports, Elon Musk ordered the slowdown of Ukraine's Starshield defense systems. Nick Schifrin reports, and Amna Nawaz discusses how the world's richest man gained such power over U.S. security interests with Charles Galbreath, a retired Air Force colonel who focused on space operations during his 30-year military career and is now at the Air Force Association's Mitchell Institute.

Volodymyr Zelensky said Wednesday he would accept a peace deal freezing the Ukraine war at current front lines.

The post Zelensky Says He Would Accept Deal to Freeze Ukraine War at Current Lines appeared first on Breitbart.

The vice president called Steve Witkoff "a diplomat" and said he was in Russia to get a job done.

The Russian leader has agreed “in principle” to resume the talks after Nov. 10, Putin’s foreign affairs adviser Yuri Ushakov told reporters.

The Russian leader has agreed “in principle” to resume the talks after Nov. 10, Putin’s foreign affairs adviser Yuri Ushakov told reporters.

The Russian leader has agreed "in principle" to resume the talks after Nov. 10, Putin's foreign affairs adviser Yuri Ushakov told reporters following a meeting in St. Petersburg between Putin and U.S. President Donald Trump's envoy Steve Witkoff.

The right policy is to treat Putin like the loser he is.  

The right policy is to treat Putin like the loser he is.  

Moscow has released retired American teacher Stephen Hubbard after more than four years in detention, following President Donald Trump’s personal intervention with Vladimir Putin and amid renewed US-Russian negotiations over Ukraine.

Russia has released Stephen Hubbard, a 74-year-old American citizen imprisoned since 2022, as US special envoy Steve Witkoff holds talks with President Vladimir Putin in St Petersburg on Wednesday, 21 October.

Putin announced the release during his meeting with Witkoff, saying Hubbard had already been transferred to Pulkovo Airport in St Petersburg in preparation for his return to the United States. Witkoff thanked the Russian president for securing the American’s freedom.

The development follows direct intervention by President Donald Trump, who confirmed on Tuesday that he had personally raised Hubbard’s detention with Putin and requested his release.

Hubbard, a retired English teacher from Michigan, had spent decades living abroad before moving to Izium, in Ukraine’s Kharkiv region, in 2014. Russian forces detained him in April 2022, during their occupation of the city following the full-scale invasion of Ukraine.

In October 2024, a Moscow court sentenced him to six years and ten months in prison after finding him guilty of serving as a mercenary for Ukrainian forces.

Russian prosecutors alleged that Hubbard had joined a Ukrainian military unit and received approximately $1,000 a month for his activities, including guarding military checkpoints.

His family rejected the accusations. His sister, Patricia Hubbard Fox, maintained that he had never participated in military operations, while his American lawyer, Martin De Luca, said the charges were fabricated.

The US State Department subsequently designated Hubbard as wrongfully detained, making his release a priority in Washington’s negotiations with Moscow.

Release coincides with renewed Ukraine diplomacy

Hubbard’s release comes during another round of intensive diplomatic contacts involving Washington, Kyiv and Moscow.

Witkoff arrived in St Petersburg following talks in Oslo on Tuesday with Ukrainian President Volodymyr Zelenskyy, Norwegian Prime Minister Jonas Gahr Støre and Finnish President Alexander Stubb. Jared Kushner, another representative of Trump’s administration, participated remotely.

The discussions addressed security arrangements, energy and economic questions connected with Russia’s war against Ukraine.

Witkoff travelled directly from Norway to Russia, where he was received by Kremlin representative Kirill Dmitriev before his meeting with Putin.

The release provides a concrete outcome from the latest US-Russian contacts, although no indication has emerged that it forms part of a broader agreement concerning Ukraine.

It also follows several previous cases in which American citizens detained in Russia have been released through negotiations between Washington and Moscow.

In August, former US Marine Robert Gilman was released on humanitarian grounds amid serious concerns about his deteriorating health.

Hubbard was the only American prisoner in Russian custody officially classified by Washington as wrongfully detained at the time of his release.

Neither side has announced whether Moscow received any concessions in exchange for his freedom, while the outcome of Witkoff’s wider negotiations with Putin remains unclear.

In July 1971, Henry Kissinger developed a convenient stomachache in Pakistan, vanished from public view and turned up in Beijing. The secret trip that led to Nixon’s opening to China rested on a simple piece of geometry: in a world of three great powers, the smart move is to stand closer to each of your […]

The post A Trump-Putin-Xi summit would put Xi at the apex appeared first on Asia Times.

The war in Ukraine can be ended permanently on terms that protect Ukraine’s statehood, meet Russia’s security concerns, and lay the foundation for a durable European security order. As another round of negotiations gears up in Norway, I propose a settlement concluded as a single package, signed by Ukraine and Russia, adopted by a vote […]

The post A viable path to peace in Ukraine appeared first on Asia Times.

US envoy Steve Witkoff will meet Russian President Vladimir Putin on Wednesday after what a US official called “constructive” talks with Ukrainian President Volodymyr Zelenskiy in Norway, as President Donald Trump said it was time for Ukraine to end the war.

The US official said Ukraine brought forward new ideas and proposals to the Oslo talks, which also involved the leaders of Norway and Finland and European and NATO representatives, and that participants made “meaningful progress” toward a coordinated approach to engaging Russia.

The official, who spoke on the condition of anonymity, said the talks covered “key elements of a comprehensive peace framework,” including security guarantees for Ukraine, a post-war economic plan and a broader European security architecture.

Witkoff would aim to “create a pathway toward direct trilateral and broader multilateral negotiations,” the official said.

Ukraine seeks stronger security guarantees

Zelenskiy travelled to Oslo seeking to repair relations with Washington, which have sunk to new lows as Trump has courted Moscow. Kyiv has complained that Washington has withheld vital military support and intelligence.

Zelenskiy told a news conference after the Oslo meeting and an earlier phone call with US Secretary of State Marco Rubio that Ukraine was again receiving early warnings of Russian missile attacks.

“Now it works, it’s great,” he said, adding he and Rubio had discussed supplies of Patriot missile interceptors as well as the satellite-based Starlink system, which Kyiv complained had stopped working when mounted on fast-moving objects such as drones.

Trump’s recent gestures toward Moscow, including a deal to buy Russian diesel and a waiver of new sanctions, sparked bipartisan pushback in the US Congress and worry in European capitals.

Zelenskiy said he had discussed “Article 5-like” security guarantees, referring to the NATO stipulation that an attack on one ally is an attack on all.

“I am thankful to the American side that they underlined again that it will be strong,” he said.

Zelenskiy reiterated that Ukraine hoped to discuss key issues on how to end the war during a trilateral meeting of leaders of Ukraine, Russia and the US.

Norway’s Prime Minister Jonas Gahr Stoere told the news conference the Oslo meeting had been good and constructive, while Finnish President Alexander Stubb added: “I think the (peace) process is back on track.”

Washington has denied deliberately hindering Ukraine’s war effort. But Trump has repeatedly rebuked Zelenskiy, and called for him to be replaced.

On Tuesday, Trump called on Ukraine to make a deal to settle the war, and said Moscow wanted to get it done. “Ukraine has to want to settle this war,” he told reporters.

Trump suggested Moscow had the upper hand in the fight because “Russia is a big machine — they just keep grinding forward, and that’s what they’ve done. They’ve taken a very large piece of land.”

US missiles to Ukraine on hold?

The US under Trump has largely stopped providing weapons directly to Ukraine but lets European countries buy US weaponry on Kyiv’s behalf under a program known as Prioritised Ukraine Requirements List (PURL). It has also provided intelligence and technology that Europe cannot match.

A source familiar with the matter said most weapons deliveries under PURL continued to flow, but US Defense Secretary Pete Hegseth had not approved Ukraine’s latest requests for Patriot interceptors.

Rubio acknowledged on Tuesday that a consignment of interceptors bought by European countries for Ukraine may not have been delivered, but denied that the US had changed policy.

“There has not been some deliberate political directive to go out and harm Ukraine,” he said on a visit to India.

Hegseth told reporters US policy toward Ukraine had not changed and stressed the need to maintain US stockpiles. “Certainly, with things like interceptors, we want to make sure our guys have the most possible as well,” he said.

He also said Washington had not pulled back Ukraine’s ability to access Starlink, which is owned by Elon Musk’s SpaceX, and appeared to signal that the problem rested with corporate terms of service Kyiv needed to comply with.

Musk has said Starshield, the military-grade version of SpaceX’s Starlink communications system, is controlled by the US government and any limits on its use are ultimately up to Trump.

Tuesday’s Wall Street Journal cited US officials and people familiar with the matter as saying that Musk ordered the slowdown after consulting with Trump and other administration officials. Reuters reported earlier that the order to limit the service came from the White House.

US missile deliveries and Starlink restrictions questioned

While US ties with Ukraine have deteriorated, Russia has stepped up attacks on Ukrainian cities, particularly targeting power stations and fuel, despite a call from Trump for both sides to spare each other’s energy systems.

Russia bombarded cities in western Ukraine overnight, targeting electricity systems and knocking out power across swathes of the country that had previously been spared.

Ukraine held back for several days last week from hitting Russian oil refineries in deference to Trump’s request, but has resumed strikes after Russia showed no sign of complying. Both sides have also struck data centres.

Trump has repeatedly condemned Ukrainian attacks on Russia while saying little about Russia’s far more severe attacks on Ukraine.

Russia hits cargo vessels

Russia’s defence ministry said on Tuesday it struck three cargo vessels in Ukraine’s port of Reni and two other cargo vessels en route to Odesa. Russian forces also hit two logistics hubs, it said.

Energy facilities were attacked in seven Ukrainian regions overnight, knocking out power, and the western Lviv region was struck again during the day. Russian drones also struck an energy facility in Kyiv on Tuesday, mayor Vitali Klitschko said, with authorities saying power was out in four districts.

The deterioration of US-Ukraine relations began 10 days ago when Trump lifted sanctions on Russian diesel in a deal agreed with Putin. Trump said this would help reduce high fuel prices that have upset US voters ahead of midterm elections on November 3.

At the weekend, Trump issued a broad waiver of tougher sanctions on Russia that were meant to have begun this week.

Poland has been one of Ukraine's staunchest supporters since the start of Russia's full-scale invasion. But many of its people are slowly turning against the one million Ukrainian refugees given sanctuary over the past four years. Divisions between Poles and Ukrainians are being exacerbated by bitter cultural memory of a World War II massacre. Special correspondent Malcolm Brabant reports.

Ukrainian President Zelenskyy met with U.S. envoy Steve Witkoff and European officials in Norway in a bid to avoid a further diplomatic rupture with President Trump. Over the past week, Trump has criticized Zelenskyy over Ukraine's efforts to inflict heavy losses on Russia. The meeting was aimed at easing tensions ahead of Witkoff's meeting with Vladimir Putin in Russia. Nick Schifrin reports.

To discuss the tensions between President Trump and Ukrainian President Zelenskyy, Geoff Bennett spoke with David Kramer. He held a number of senior positions at the State Department during the George W. Bush administration. He's now the executive director of the George W. Bush Institute in Dallas, Texas.

Talks in Oslo have restored diplomatic contact between Kyiv and Washington, but Donald Trump continues to demand concessions from Ukraine while Moscow shows little willingness to compromise. Steve Witkoff’s forthcoming meeting with Russian officials will expose the limits of the American peace initiative.

The latest negotiations over Russia’s war against Ukraine have produced a renewed diplomatic initiative, with US presidential envoy Steve Witkoff preparing to travel to St Petersburg on Wednesday, 21 October, following consultations with Ukrainian and European leaders in Oslo.

President Volodymyr Zelenskyy met Witkoff alongside Norwegian Prime Minister Jonas Gahr Støre and Finnish President Alexander Stubb on Tuesday. Jared Kushner, Donald Trump’s son-in-law, participated remotely. The discussions covered territorial questions, security guarantees, sanctions and proposals for a partial ceasefire.

The meeting concluded with cautious expressions of optimism. Stubb suggested that the negotiating process was back on track, while Støre confirmed that Witkoff would present proposals developed by American, Ukrainian and European representatives to the Russian leadership.

However, the diplomatic improvement contrasts with Trump’s renewed public pressure on Zelenskyy, raising questions about Washington’s negotiating strategy and whether Moscow has any intention of accepting the proposed settlement.

Washington’s contradictory signals

Speaking in the Oval Office on Tuesday, Trump again insisted that Ukraine must reach an agreement with Russia, portraying Moscow’s military position as increasingly advantageous.

His remarks closely resembled arguments advanced during earlier disputes with Zelenskyy, when Washington pressed Kyiv to accept territorial concessions rather than increase pressure on the Kremlin.

Meanwhile, Secretary of State Marco Rubio sought to reassure the Ukrainian leadership that American military cooperation had not been deliberately restricted.

Rubio denied that Trump had ordered changes to intelligence-sharing or weapons assistance. Zelenskyy subsequently confirmed that Ukraine was again receiving American early-warning intelligence concerning Russian ballistic missile attacks.

Nevertheless, serious problems remain. Ukraine has reported delays in deliveries of American-made Patriot interceptors purchased by European allies, while restrictions affecting the military Starshield satellite communications system have not been fully resolved.

These difficulties are particularly serious as Russia intensifies attacks against Ukrainian electricity infrastructure, attempting to undermine civilian services ahead of winter.

The conflicting signals leave Kyiv negotiating with an administration whose diplomatic representatives promise continued cooperation while its president publicly demands Ukrainian concessions.

Security guarantees without NATO membership

Among the proposals discussed in Oslo were security arrangements intended to provide Ukraine with protection comparable to NATO’s Article 5 collective-defence provision.

Zelenskyy acknowledged that American representatives had discussed such guarantees, although their precise obligations and enforcement mechanisms remain undisclosed.

The proposal presents a fundamental negotiating problem.

Russia has consistently opposed Ukrainian NATO membership, partly because the alliance’s collective-defence commitments would increase the consequences of any renewed Russian aggression.

An alternative arrangement offering genuinely comparable protection would consequently encounter many of the same Russian objections.

Conversely, guarantees lacking a credible enforcement mechanism would leave Ukraine exposed to another attack after a ceasefire.

Moscow’s record provides little reassurance. Russia violated Ukraine’s internationally recognised borders in 2014 and launched its full-scale invasion in 2022 despite previous commitments to respect Ukrainian sovereignty.

The Kremlin’s objectives extend beyond territory

Washington’s approach appears increasingly concentrated on securing an agreement involving territorial concessions and restrictions on Ukraine’s future security arrangements.

Yet Putin’s objectives have consistently extended beyond the territories occupied by Russian forces.

The Kremlin has demanded constraints on Ukraine’s military capabilities, international alliances and strategic independence. Accepting territorial gains alone would not necessarily satisfy Moscow’s wider political ambitions.

Russian Foreign Minister Sergei Lavrov has maintained that Moscow is unwilling to make substantial political concessions, while the Kremlin continues to insist that any agreement must address what it describes as the underlying causes of the conflict.

Those conditions have previously included demands that would substantially restrict Ukraine’s sovereignty.

Consequently, even a Ukrainian willingness to consider elements of Washington’s proposals would not guarantee Russian acceptance.

The political calculation behind an energy ceasefire

One possibility under consideration is a limited ceasefire protecting energy and potentially food-related infrastructure.

Zelenskyy has indicated that Ukraine could suspend attacks against Russian energy facilities if Moscow stopped striking Ukrainian infrastructure.

Such an arrangement could reduce immediate civilian suffering. It would also have military and economic consequences.

Ukrainian attacks against Russian refineries, oil terminals and other energy installations have increasingly targeted infrastructure supporting Moscow’s war economy.

A temporary suspension could allow Russia to repair damaged facilities, restore production and stabilise export revenues. Without credible monitoring and enforcement, Moscow could exploit a limited agreement while leaving the wider conflict unresolved.

Trump has additional reasons to seek a rapid diplomatic result. With American congressional elections scheduled for 3 November, his administration is attempting to contain domestic fuel prices and demonstrate progress towards ending the war.

His recent decision to ease restrictions on Russian diesel exports has already provoked concern in Kyiv and European capitals over the potential financial benefits to Moscow.

The danger for Ukraine is that an agreement presented as a diplomatic achievement in Washington could provide Russia with economic relief without altering its military objectives.

The decision awaiting Washington

Witkoff’s visit to St Petersburg will establish whether Moscow is prepared to engage with the proposals developed in Oslo.

Putin could accept a temporary arrangement, particularly one suspending Ukrainian strikes on Russian energy infrastructure, while postponing discussions over territorial and political questions.

Alternatively, Moscow could reject the initiative and maintain its existing demands.

In either case, Washington will face a decision over the consequences of Russian intransigence.

For Kyiv, continued engagement with the United States remains essential because American intelligence, satellite communications and advanced air-defence weapons cannot readily be replaced.

But the prospects for a negotiated settlement will depend less on further Ukrainian concessions than on whether Russia faces sufficient political, military and economic pressure to abandon its maximalist demands.

The Oslo negotiations have restored cooperation between Ukraine, Europe and American mediators. They have not established that Putin is prepared to end the war on terms compatible with Ukraine’s continued independence.

Russia’s central bank has reduced its gold holdings to their lowest level in nearly seven years as the Kremlin faces a widening budget deficit, declining energy revenues and mounting expenditure on its war against Ukraine.

Russia has carried out its largest sustained reduction in gold reserves since the financial crisis of 1998, disposing of approximately 62 tonnes of the precious metal since December 2025 as the government draws on accumulated reserves to finance a growing federal budget deficit.

According to figures released by the Bank of Russia on Tuesday, 20 October, the country’s monetary gold reserves declined by another 200,000 troy ounces, equivalent to approximately 6.2 tonnes, during September.

The latest reduction brings Russia’s official gold holdings to 72.8 million troy ounces, or approximately 2,264 tonnes, their lowest level since the end of 2019.

The central bank has now reduced its gold holdings for ten consecutive months, reversing the accumulation strategy pursued by Moscow in the years preceding its full-scale invasion of Ukraine.

Largest gold sell-off since the 1998 crisis

The scale of the current reduction is exceptional by Russian historical standards.

According to International Monetary Fund data cited in reporting on the latest figures, the only more rapid depletion of Russian gold reserves in the country’s modern history occurred during the 1998 financial crisis.

At that time, Russia’s central bank disposed of approximately 118 tonnes of gold over three months as the government defaulted on domestic debt and the rouble collapsed.

Some of those holdings were subsequently replenished, leaving the country’s gold reserves approximately 50 tonnes lower at the end of 1998.

The reduction recorded during 2026 has already exceeded that annual net decline, although Russia’s present financial position differs substantially from the circumstances surrounding the 1998 default.

The monetary value of Russia’s remaining gold reserves stood at approximately $301.6 billion at the end of September, compared with $333.5 billion a month earlier. The change reflects movements in gold prices as well as the reduction in physical holdings.

Budget deficit reaches 7.3 trillion roubles

The sales come as the Russian government struggles to contain expenditure associated with its continuing military campaign against Ukraine.

Moscow now expects its federal budget deficit to reach 7.3 trillion roubles, approximately $87 billion, in 2026. That represents 3.2 per cent of gross domestic product, twice the deficit originally anticipated.

Military and security expenditure is expected to account for approximately 38 per cent of total federal spending this year.

The government has increasingly relied on its National Wealth Fund, established to accumulate surplus energy revenues, to cover budget shortfalls.

The central bank’s gold transactions are linked to operations involving the fund. Under this mechanism, the Bank of Russia conducts corresponding market sales following Finance Ministry transactions using the fund’s assets.

Figures published by Russia’s Finance Ministry earlier this month showed that the National Wealth Fund’s liquid assets had fallen to approximately 3.8 trillion roubles, equivalent to $45 billion, as of 1 October. This was down from approximately 4 trillion roubles a month earlier.

The fund’s total assets remained substantially larger, at almost 13 trillion roubles, but much of that amount is invested in shares, bonds and other holdings that cannot immediately be converted into funds for government expenditure.

War expenditure puts pressure on Kremlin finances

Russia’s fiscal problems have been compounded by weaker oil and gas revenues, a slowdown in economic activity and the increasing cost of sustaining military operations.

Although energy exports continue to generate substantial income, government revenue has failed to keep pace with spending commitments.

Moscow has consequently increased domestic borrowing, introduced additional taxes and sought alternative sources of budget financing.

The latest gold figures provide further evidence of the financial demands imposed by the war, now approaching its fifth anniversary.

They do not indicate that Russia is approaching an immediate financial collapse. The country still holds considerable gold and foreign exchange reserves, with the central bank reporting total international reserves of approximately $731.8 billion at the end of September, although access to part of its overseas assets remains restricted by Western sanctions.

Nevertheless, the continued liquidation of gold holdings reduces the reserve assets available to the Russian authorities at a time when military spending remains elevated and the government faces pressure to meet its domestic financial commitments.

For President Vladimir Putin, the growing budget deficit introduces an additional economic consideration into decisions over the duration of the war.

The September figures show that Moscow is increasingly drawing on assets accumulated before the invasion to support current expenditure, while its capacity to rebuild those reserves remains dependent on future revenues and the government’s ability to restrain spending.