Russia’s international reserves have surged to an all-time high of $695.5 billion at the end of July, according to data released by the country’s central bank on Thursday. The new figure surpasses the previous record of $690 billion set on July 4 and represents a $5.5 billion increase since the beginning of the month.
The reserves include a mix of foreign currencies, gold, special drawing rights (SDRs) from the International Monetary Fund, and other highly liquid assets. Managed by the Bank of Russia and the Russian government, these funds are intended to stabilize the ruble, service external obligations, and shield the economy from financial shocks.
However, the headline figure continues to include more than $300 billion in assets frozen by Western nations following the escalation of the Ukraine conflict in 2022. Russia has repeatedly denounced the freeze as illegal, with President Vladimir Putin labeling the use of the country’s funds by foreign governments as “robbery.”
Despite the freeze, Russia’s reserves have grown by over $100 billion since the start of 2023, reflecting efforts by the Kremlin to strengthen its financial buffers amid ongoing sanctions and geopolitical tensions.
According to EU data, around two-thirds of the frozen Russian assets are held at the Brussels-based clearing house Euroclear, which reported €2.1 billion (approximately $2.3 billion) in profits from these funds earlier this year. While legal and diplomatic hurdles have so far prevented full confiscation, the European Union has authorized the use of earnings generated from the assets to provide financial support to Ukraine.
Last year, Euroclear transferred €1.5 billion in interest income from the frozen Russian reserves to help fund a $50 billion G7 loan for Ukraine. The European Commission has already disbursed €7 billion of its €18.1 billion commitment from that pool, with plans to repay the loan using further proceeds from the frozen accounts. Brussels is also weighing proposals to reinvest the assets in higher-yielding instruments to maximize returns.
Moscow has warned of grave consequences if Western nations proceed with any move to confiscate the reserves outright. President Putin has argued that such actions would destabilize the global financial system and accelerate a broader shift away from Western financial institutions and toward alternative regional mechanisms.
