Foreign Investors Urgently Getting Rid of Toxic russian Securities

7/31/2026

As of early July of this year, the share of non-residents in russian federal loan bonds (OFZs) stood at just 3%. The figure is the lowest in the history of this financial instrument. The volume of non-resident investment in government debt reflects the level of confidence in the country’s financial system and economy as a whole. To put this in perspective: foreigners traditionally hold 30–40% of government debt in European countries and the United States.

The dynamics of foreigners selling off their portfolios of russian securities shows that this trend began with russia’s first aggressive actions against Ukraine, and the process has only gained momentum with each passing year. For example, in March 2020, non-residents held 34.9% of russia’s government debt; in October 2021 – 21.6%; as of June 2026 – 3.2%; in July – 3%.

The drop in the share held by non-residents to nearly zero is a harbinger of the country’s imminent economic collapse. In the absence of foreign capital and with assets frozen, the state is forced to borrow exclusively within the country. The kremlin can compel only its own “pocket” businessmen to purchase OFZs through repressive measures. The primary mechanism for such financing is money issuance, which inevitably leads to an increase in the money supply.

Over the past four years, the amount of money in russia’s economy has doubled: from 67 trillion to 135 trillion rubles. Nearly 70 trillion rubles of that amount is a direct result of the printing press.