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Russia’s External Debt Reaches 20-Year Peak as Budget Pressures Mount
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![Photo of Vlad Litnarovych]( "Photo of Vlad Litnarovych")
Russia’s external state debt reached $61.97 billion as of February 1, 2026, marking the highest level in roughly 20 years, according to data released by the country’s Finance Ministry on February 12.
For comparison, external state debt stood at $76.5 billion on January 1, 2006, before falling to $52 billion in 2007 and remaining below $60 billion in subsequent years until now.
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External state debt reflects the government’s obligations to non-resident creditors in foreign currency and represents only one portion of Russia’s overall external liabilities, which also include debts owed by banks, state-owned and private companies, and other organizations.
The Central Bank of Russia estimated the country’s total external debt at $319.8 billion as of January 1, 2026—an increase of $30 billion, or 10.4%, over the previous year.
Regulators attributed the rise to a revaluation of obligations following ruble strengthening as well as the attraction of additional debt financing.
Alongside foreign borrowing, the Russian government has significantly expanded its domestic debt.
Finance Ministry figures show that between 2023 and 2025, internal government debt grew by 13 trillion rubles (about $168 billion), reaching 38.5 trillion rubles (roughly $498 billion).
Authorities plan to borrow an additional 3.98 trillion rubles in 2026 (around $51.5 billion), 3.79 trillion rubles in 2027 (about $49 billion), and 4.57 trillion rubles in 2028 (approximately $59.1 billion).
Including state guarantees, total domestic government debt is projected to rise by 15.2 trillion rubles (about $196.6 billion) over three years, reaching 53.7 trillion rubles (roughly $694 billion).
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The government has been forced to increase borrowing to cover a widening budget deficit, which in 2025 exceeded the original target fivefold, totaling 5.7 trillion rubles (around $73.7 billion).
Officials aim to reduce the shortfall to 3.8 trillion rubles (about $49.2 billion) this year.
On the domestic market, the Finance Ministry is issuing 10-year bonds yielding roughly 14–15% annually, pushing interest payments toward 1.5% of GDP, according to Alfa-Bank chief economist Natalia Orlova.
Earlier, reports emerged that Russian authorities confiscated property worth about 100 billion rubles ($1.1 billion) in a nationwide wave of asset seizures.
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