Foreign investors have begun to divest themselves of toxic Russian securities. The share of non-residents in Russian federal loan bonds as of the beginning of July this year was only 3%, reports UNN citing the Foreign Intelligence Service of Ukraine.
Details
The volume of non-resident investments in government debt indicates the level of trust in the financial system and the country's economy as a whole. For context: foreigners traditionally hold 30–40% of government debt in European countries and the United States. The dynamics of foreign sales of Russian securities portfolios show that this trend began with the first aggressive moves by the Russian Federation against Ukraine, and the process has only gained momentum each year. Thus, in March 2020, non-residents held 34.9% of Russia's government debt, in October 2021 - 21.6%, as of June 2026 - 3.2%, and in July - 3%
It is also noted that the decline in the share of non-residents to nearly zero is a harbinger of the country's rapid economic collapse. In the absence of foreign capital and under conditions of asset blocking, the state is forced to borrow exclusively within the country. The Kremlin can only force its own "pocket" businessmen to buy OFZs through repressive measures. The main ultimate mechanism of such financing becomes emission, which inevitably leads to an increase in the money supply.
Recall
The Russian government can no longer raise the necessary funds on the market and is forcing state banks to buy up federal loan bonds. At the same time, the central bank provides liquidity for this.