Russia’s International Reserves: Updates, Sanctions Impact, and Asset Management
As of March 25, Russia’s international reserves stood at 604.4 billion dollars. The Central Bank released documents on March 31 showing a decline of 38.8 billion dollars from the figure reported on February 18.
A regulator’s statement attributed the reserve reduction to currency interventions, currency refinancing, and asset revaluations, noting a 6% drop overall. This reflects the ongoing effects of sanctions and market interventions on the country’s foreign asset holdings.
In early March 2022, the Bank of Russia paused publishing updated reserve figures. Previously, data were anchored to February 18, when reserves peaked at 643.2 billion dollars. The latest figures track the monthly fluctuations in a context of intensified financial restrictions.
According to the Central Bank, reserves were 629.4 billion dollars on February 25, 608.9 billion on March 4, and 611.8 billion on March 11, with an update on March 18 continuing the trend of volatility in reserve levels.
To mitigate sanctions risks, the Bank of Russia shifted how it reports the nation’s international reserves and the management of assets in foreign currency and gold. Beginning March 31, 2022, the total international reserve indicator is published on a weekly and monthly cadence, alongside ongoing updates on asset management in foreign currency and gold. From January 1, 2022, asset management data are published in the Bank’s 2021 Annual Report. The publication of reviews on asset management in foreign currency and gold has been suspended since that date. These reserves comprise liquid foreign assets, including foreign exchange reserves, special drawing rights, a reserve position at the IMF, and monetary gold, as defined by the regulator.
Freezing of Central Bank assets
In response to Russia’s military actions in Ukraine, many nations imposed sanctions. Official sources note a rapid increase in restrictive measures, with the Russian Federation becoming a leading case by March 8 in terms of restrictions. The total number of measures cited reached around six thousand, and by mid-March the European Union announced a further sanction package. Comparatively, fewer measures were imposed on Iran and North Korea in the past.
The dominant restrictions concern asset freezing. By late February, the European Union and the United States froze assets of the Central Bank of the Russian Federation, which affected transactions related to the reserve management by entities acting on its behalf, per the regulatory portal Pravo.ru.
Finance Minister Anton Siluanov later stated that roughly half of the Bank’s assets had been frozen, and Russia reportedly lost access to around 300 billion dollars of its 640 billion during the sanctions period. This assessment was reported by RBC.
In response, President Vladimir Putin announced actions to diversify trade with non-friendly countries, including steps to settle oil and gas transactions in rubles. A decree was issued authorizing gas trade with unfriendly countries, requiring payments to be made in rubles. Putin indicated that Western buyers would need ruble accounts in Russian banks and cautioned that Moscow would not subsidize or subsidize non-compliance with ruble payment terms.
The overall picture shows the Bank of Russia navigating a volatile environment where reserve liquidity, sanctions pressure, and strategic currency moves intersect with state responses to global energy markets and geopolitical shifts.