- Category
- Latest news
Russia’s Currency Reserves Drop to 16-Year Low as Sanctions Bite and Capital Flees

Currency reserves in Russian banks have fallen to their lowest level in 16 years as Western sanctions tighten and financial ties with global markets weaken according to a Moscow times report on February 4.
As of November 2024, client accounts of individuals and businesses in Russian banks held $159 billion, the lowest amount since 2008, according to data from the Central Bank of the Russian Federation.
In December, client accounts saw an outflow of $4.9 billion, bringing the total decline in the fourth quarter to $15.9 billion, according to estimates by Yegor Susin, managing director of GPB Private Banking. Since the beginning of the war, foreign currency accounts have shrunk by 40%, or $104 billion, marking the largest recorded outflow in available Central Bank data.
Individuals have withdrawn $52 billion, partly due to the departure of hundreds of thousands of citizens who took their savings with them. Businesses have withdrawn or converted $44 billion, reducing their pre-war currency reserves by one-third.
Surgutneftegaz has significantly reduced its foreign currency holdings, according to economist Viktor Tunev. Before the war, the company held $61 billion in its accounts—an amount larger than the foreign reserves of Colombia ($57 billion) or South Africa ($53 billion).
Tunev estimates that in 2023, the company converted about $20 billion of its reserves into ruble assets, followed by another $10 billion at the end of 2024 after being targeted by US sanctions.
Fewer depositors are keeping foreign currency in Russian banks. Since the Central Bank eased mandatory foreign currency sale requirements in the summer, exporters have been leaving more of their revenue in overseas accounts, notes BCS analyst Ilya Fedorov. In December, business foreign exchange assets increased by $4.9 billion.
Payment difficulties have also contributed to the trend, with funds from raw material sales being held abroad. According to MoneyRoo estimates, $30 billion in revenue failed to reach Russia last year.
These foreign-held revenues function as unofficial reserves for Russia, according to Janis Kluge, a research fellow at the German Institute for International and Security Affairs. He estimates that these hidden reserves amount to $180 billion—roughly half of Russia’s federal budget ($406 billion) and comparable to the Central Bank’s gold reserves ($188 billion).
Little is known about these reserves, including their location and the assets they are invested in.
Kluge suggests that this money is likely held in countries Russia considers "friendly," such as Turkey or India, which have large trade deficits with Russia of $3 billion and $6 billion per month, respectively.
On February 3, Raiffeisen Bank International ’s Russian division processed transactions for suppliers to Russia’s military industry. Despite announcing plans to scale down in July 2024, Raiffeisen remains the largest Western bank in Russia.