Russia’s international reserves surge to all-time high level
(MENAFN)
Russia’s international reserves surged to an all-time high of $695.5 billion by the end of July, according to a statement released Thursday by the country’s central bank. The new figure surpasses the previous record of $690 billion set on July 4 and marks the highest level of reserves in Russian history.
Russia’s international reserves surged to an all-time high of $695.5 billion by the end of July, according to a statement released Thursday by the country’s central bank. The new figure surpasses the previous record of $690 billion set on July 4 and marks the highest level of reserves in Russian history.
The reserves, which include foreign currencies, gold, International Monetary Fund (IMF) special drawing rights, and other liquid assets, are jointly managed by the Russian government and the Bank of Russia. These funds are intended to stabilize the national currency, meet foreign debt obligations, and provide a financial buffer in times of crisis.
However, more than $300 billion of these reserves remain frozen by Western countries due to sanctions imposed following Russia’s 2022 invasion of Ukraine. Moscow has repeatedly condemned the freeze as illegal and politically motivated.
Despite the asset freeze, Russia’s reserves have continued to grow, increasing by over $100 billion since the start of 2023. The Bank of Russia still includes the frozen holdings in its total reserve tally but has not disclosed a detailed breakdown of the assets currently under Western control.
Approximately two-thirds of the frozen funds are held by Euroclear, a Brussels-based financial clearing house. The European Union reported in April that it had generated €2.1 billion (around $2.3 billion) in profits from these immobilized Russian assets.
While direct confiscation of the funds has faced legal and diplomatic hurdles, EU leaders have approved the use of the interest income to finance aid for Ukraine. In 2023, Euroclear transferred €1.5 billion in proceeds to support a $50 billion G7 loan package for Kiev. The European Commission has already disbursed €7 billion from its €18.1 billion share, with future repayments expected to come from continued returns on the frozen reserves.
To boost yields, Brussels is now weighing options to reinvest the funds in higher-return instruments, potentially increasing the revenue stream available to back Ukraine-related spending.
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