Central bank announces Russia’s international reserves reaching record high
(MENAFN) Russia's international reserves have climbed to a historic peak of $687.7 billion as of late June, according to the country’s central bank. The Bank of Russia reported on Thursday that the increase of $500 million over the week ending June 20 was due to favorable market revaluations, with a total monthly gain of $9 billion. This surpasses the previous record of $687.3 billion set in early May.
The international reserves, which consist of foreign currencies, gold, and IMF special drawing rights, are updated weekly with a one-week delay. Despite the milestone, over $300 billion of Russia’s reserves remain frozen in Western countries as part of sanctions imposed after the Ukraine conflict escalated in 2022 — a move Moscow has labeled unlawful.
About two-thirds of the frozen assets are reportedly held by the Brussels-based Euroclear clearing house, which has generated billions of euros in interest. Although some Western nations have advocated for outright confiscation of the assets, legal concerns over sovereign immunity have prevented such action. Instead, the EU has approved using the interest proceeds to fund support for Ukraine.
Last year, Euroclear contributed €1.5 billion ($1.7 billion) in interest income toward a $50 billion G7 loan package for Ukraine. So far, €7 billion has been disbursed from the European Commission’s €18.1 billion share, which will be repaid using earnings from the immobilized Russian funds.
Reports suggest the EU is now considering investing the frozen assets in higher-return instruments via an EU-managed fund to increase profits without seizing the core capital. However, the proposal faces resistance from countries like Germany and Italy due to legal and financial implications.
The Kremlin has harshly criticized the freeze, warning of potential retaliatory measures against Western-owned assets within Russia. President Vladimir Putin recently described the West’s actions as not just “theft” but outright “robbery,” adding that any seizure would accelerate Russia's pivot away from Western financial systems and toward alternative regional mechanisms.
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