The country’s holdings have increased by $5.5 billion since the start of July, according to the central bank

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Russia’s international reserves reached a record high of $695.5 billion at the end of July, the country’s central bank reported on Thursday. More than $300 billion of that amount remains frozen by Western nations over the Ukraine conflict – a move that Moscow has condemned as unlawful.

The figure marks the highest level ever recorded, surpassing the previous peak of $690 billion registered on July 4.

Russia’s international reserves consist of foreign currencies, gold holdings, IMF special drawing rights, and other highly liquid assets. These funds are managed by the central bank and the government and can be deployed to stabilize the ruble, service external debt, or respond to financial crises.

 

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The Bank of Russia has not provided a detailed breakdown of the assets held by Western agencies since the escalation of the Russia-Ukraine conflict in 2022, though it continues to include them in its official reserve figures. Russia’s total reserves grew by over $100 billion from the beginning of 2023.

About two-thirds of Russia’s reserves frozen by the West are held by Brussels-based clearing house Euroclear. In April, the EU reported €2.1 billion ($2.3 billion) in profits from the assets. While legal and political obstacles have stalled attempts at outright confiscation, EU leaders have authorized using the earnings to support Kiev.

Last year, Euroclear transferred €1.5 billion in interest income to a $50 billion G7 loan for Ukraine. The European Commission has since disbursed €7 billion from its €18.1 billion share, to be repaid using proceeds from the frozen funds.

Brussels is also considering reinvesting the assets in higher-yield instruments to increase returns.

Moscow has condemned the asset freeze, with President Vladimir Putin calling the use of Russian funds by the West “robbery” and warning of serious consequences. He said any attempt to seize the reserves would undermine global financial stability and accelerate the shift toward regional payment systems and away from Western institutions.