Russia’s international reserves hit historic record
(MENAFN) Russia’s international reserves have reached a new all-time high of $695.5 billion as of late July, according to the country’s central bank. This surpasses the previous record of $690 billion set on July 4. However, more than $300 billion of these assets remain frozen by Western countries due to the ongoing Ukraine conflict—a move that Moscow strongly opposes, calling it illegal.
The reserves include foreign currencies, gold, IMF special drawing rights, and other liquid assets controlled by the Russian central bank and government. These resources serve multiple purposes, such as stabilizing the ruble, covering foreign debt, and responding to economic emergencies.
While the Bank of Russia continues to count the frozen assets in its total reserve figures, it hasn’t detailed where those assets are located since the escalation of the conflict in 2022. Russia’s reserves have increased by over $100 billion since the start of 2023.
The majority of the frozen funds are held by the Belgium-based financial institution Euroclear. In April, the EU reported earning €2.1 billion (around $2.3 billion) in interest from these frozen Russian assets. Although outright seizure has been legally complicated, EU leaders have approved using those profits to aid Ukraine.
In 2023, €1.5 billion in interest was funneled into a $50 billion G7 loan package for Ukraine, with the EU already disbursing €7 billion from its €18.1 billion share. Brussels is now exploring the possibility of reinvesting the assets into higher-yield ventures to boost returns.
Russian President Vladimir Putin has denounced the freezing and use of Russian funds as theft and warned it could destabilize the global financial system. He argued that such actions could push more nations to abandon Western financial structures in favor of regional alternatives.
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