(KYIV, Ukraine) – Foreign investors have cut their holdings of Russian federal loan bonds to just 3 percent, the lowest level since the debt instrument was first created. The figure marks a near total exit by non residents from what was once a widely held emerging market asset.
Ukraine’s Foreign Intelligence Service released the data, stating that the share of non residents in OFZ bonds fell to 3 percent by early July 2026. The agency noted that the volume of foreign investment in a country’s sovereign debt is a direct measure of confidence in its financial system and wider economy. In European countries and the United States, non residents typically hold between 30 and 40 percent of government debt.
The sell down trend began with the first aggressive actions by the Russian Federation against Ukraine and has gathered pace each year. In March 2020, non residents held 34.9 percent of Russia’s government debt. By October 2021, that share had dropped to 21.6 percent. It stood at 3.2 percent in June 2026 and slipped further to 3 percent in July.
Ukraine’s intelligence service described the near zero foreign participation as a warning sign of a fast approaching economic collapse. Without foreign capital, and with assets blocked abroad, the Russian state is forced to borrow almost entirely from domestic sources. The Kremlin can compel only its own favoured businessmen to buy sovereign bonds through coercive measures, the agency added.
The main end mechanism of such financing becomes money printing, which inevitably leads to growth in the money supply, the intelligence assessment said. The volume of funds in the Russian economy has doubled over the past four years, rising from 67 trillion roubles to 135 trillion roubles. Nearly 70 trillion roubles of that total is a direct result of the printing press. At current exchange rates, 135 trillion roubles equals approximately $1.48 trillion or £1.15 trillion, with the money supply expansion from printing alone accounting for roughly $765 billion or £595 billion.
Separately, reports have indicated that Russia’s wealthiest individuals are urgently restructuring their investment portfolios, shifting capital into cryptocurrency, overseas property and private investment funds.