Central bank states Russia’s international reserves hit all-time high
(MENAFN) Russia’s international reserves hit an all-time high of $687.7 billion at the end of June, according to the country’s central bank report released on Thursday. Despite over $300 billion of these reserves being frozen by Western countries in response to the Ukraine conflict—a move Moscow calls illegal—the reserves grew by $500 million (0.1%) during the week ending June 20 due to positive market revaluation. Over the past month, the reserves increased by $9 billion, surpassing the previous peak of $687.3 billion set in early May.
The Bank of Russia publishes weekly reserve updates with a one-week delay. These international holdings consist of foreign currencies, IMF special drawing rights, and gold. Approximately half of Russia’s reserves have been frozen by the West since early 2022, but the bank has not disclosed exact details of the frozen assets.
About two-thirds of the frozen funds are held by Euroclear, a clearinghouse based in Brussels, generating billions of euros in interest. While some Western nations have advocated seizing these funds outright, legal and political concerns, including sovereign immunity, have prevented this. The EU has approved using the earnings from these frozen assets to aid Ukraine.
In 2024, Euroclear transferred €1.5 billion ($1.7 billion) in interest to support a $50 billion G7 loan to Ukraine. The European Commission has since allocated €7 billion from its €18.1 billion portion of that loan, which will be repaid using proceeds from the frozen Russian assets. Reports suggest the EU is considering investing the frozen funds in higher-yield assets through an EU-managed fund, although Germany and Italy oppose this due to legal and financial risks.
Moscow condemns the asset freeze and has threatened retaliation against Western investments and properties in Russia. President Vladimir Putin recently labeled the Western use of Russian assets as “robbery,” warning that any confiscation could prompt a move away from Western financial systems toward regional alternatives.
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