As of July 1, 2023, Russia’s external debt stood at $347.7 billion, marking an 8.7% decline from the start of the year. This is the lowest level seen since 2006, a milestone noted by the regulator. The shift reflects a broad pattern: liabilities held by various sectors shifted away from debt instruments, aided in part by the introduction of a substitution bond issuance mechanism that reduces overall exposure. The regulator emphasized that this mechanism helped reshape the debt profile while keeping financing channels open for important government needs. (Source: Central Bank)
The report also highlighted that government debt reductions were driven in part by non-residents selling government securities, an action that contributed to a smaller stock of outward liabilities tied to state borrowing. This dynamic appears alongside ongoing adjustments in foreign holdings of Russia’s debt instruments, which influence both liquidity and the risk profile of the country’s external obligations. (Source: Central Bank)
According to the Central Bank, Russia’s foreign debt on January 1, 2023 stood at $380.5 billion, and the year 2022 saw a decline of $101.8 billion in external liabilities. This trajectory underscores a broad tightening of external exposure amid shifting capital flows and policy measures aimed at stabilizing external financing conditions. (Source: Central Bank)
In May, the composition of Russia’s external debt relative to GDP for 2022 showed a ratio dipping to at least 16.6%. Among the world’s largest economies, this ratio is modest in comparison with peers: China recorded a drop from 15.4% to 13.7% in the same period, while India registered an external debt level of 19.1% of GDP. These figures reflect differing debt structures and economic resilience across major economies, where exchange rate movements, commodity cycles, and fiscal policy interact to shape external leverage. (Source: Central Bank)
Earlier, there were mentions within discussions about sovereign assets frozen within the European Union in relation to Russia, framed as part of broader sanctions and asset freezings. These developments form part of the larger context in which external debt dynamics are analyzed, influencing perceptions of risk, liquidity, and the ability to access international funding markets. (Source: Central Bank)
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