Russia’s International Reserves Hit Record $695.5 Billion Despite Western Asset Freeze

MOSCOW — Russia’s international reserves soared to a historic high of $695.5 billion at the end of July, according to data released by the Central Bank of Russia on Thursday. The figure surpasses the previous peak of $690 billion, recorded on July 4, and reflects the continued growth of the country’s reserve stockpile—even as more than $300 billion remains frozen by Western governments in response to the ongoing conflict in Ukraine.

The reserves include foreign currencies, gold bullion, IMF Special Drawing Rights (SDRs), and other highly liquid assets, all jointly managed by the central bank and the Russian government. These assets serve as a financial buffer, enabling Moscow to stabilize the ruble, service foreign debt, and navigate external economic shocks.

Despite the growing reserve figure, nearly half of Russia’s international holdings have been inaccessible since early 2022, when the U.S., EU, and other Western allies imposed sweeping financial sanctions. The Bank of Russia has not disclosed a detailed inventory of the affected assets but continues to account for them in its total reserve calculation.

Frozen Funds Generating Billions in Western Profits

Approximately two-thirds of the frozen assets are held with Euroclear, a Brussels-based securities depository. According to EU disclosures, these immobilized Russian funds have generated billions in interest, prompting European policymakers to redirect the earnings toward Ukraine’s reconstruction.

In April, the European Union reported earning €2.1 billion ($2.3 billion) in interest income from the Russian reserves. Of that, €1.5 billion was allocated to a $50 billion G7 loan package to support Ukraine. The European Commission has already disbursed €7 billion from its €18.1 billion share, with repayments tied to future returns on the frozen assets. EU leaders are also weighing the possibility of reinvesting the reserves in higher-yield instruments to further boost returns.

Moscow Slams Asset Freeze as “Robbery”

The Russian government has vehemently criticized the continued freeze and monetization of its sovereign assets. President Vladimir Putin has labeled the West’s actions as outright “robbery,” warning that any attempt to confiscate the reserves would have far-reaching consequences for the global financial system.

“Such actions undermine trust in international financial institutions and will only accelerate the transition to alternative payment systems,” Putin said, alluding to Russia’s increasing pivot toward regional financial structures and non-Western partners.

Despite the sanctions, Russia’s total reserves have grown by over $100 billion since the start of 2023, underscoring Moscow’s determination to strengthen its economic resilience and adapt to evolving geopolitical constraints.