The country’s holdings have risen by nearly $10 billion over the past month, official data shows
Russia’s international reserves reached a record high of $687.7 billion at the end of June, the country’s central bank reported on Thursday. Over $300 billion of that amount remains frozen in the West over the Ukraine conflict, in a move Moscow has described as illegal.
According to data from the Bank of Russia, reserves rose by $500 million, or 0.1%, during the week of June 20 due to “a positive market revaluation.” Over the past month, they have increased by $9 billion. The previous high of $687.3 billion was recorded in early May.
The central bank publishes weekly updates on reserves with a one-week delay. Russia’s international holdings include foreign currencies, IMF special drawing rights, and monetary gold.
Roughly half of Russia’s international reserves – over $300 billion – was frozen by the West in early 2022 following the escalation of the Ukraine conflict. The Bank of Russia has not disclosed the full breakdown of what was frozen.
About two-thirds of the immobilized funds are held by Brussels-based clearing house Euroclear and have generated billions of euros in interest. Some Western states have pushed for outright confiscation of the funds, although legal and political concerns, including issues of sovereign immunity, have so far stalled the move. EU leaders have nonetheless greenlighted using the proceeds from the frozen assets to support Ukraine.
Last year, Euroclear transferred €1.5 billion ($1.7 billion) of interest income to support a $50 billion G7 loan for Ukraine. The European Commission has since disbursed €7 billion from its €18.1 billion share of that loan, to be repaid with proceeds from the frozen Russian assets. Brussels is also reportedly exploring options to invest the frozen assets in higher-yield instruments. According to a Politico report last month, unnamed EU officials said the bloc is considering creating an EU-run fund to increase returns without directly seizing the principal, an idea opposed by Germany and Italy due to legal and financial risks.
Moscow has condemned the asset freeze and hinted at retaliatory steps against Western investments and property in Russia. Russian President Vladimir Putin last month said even the description as “theft” was an understatement, describing the West’s use of Russian funds as “robbery.” He warned that any seizure would trigger a shift away from Western financial institutions and toward regional payment systems.