Foreign ownership of Russian OFZ bonds falls to 3% as capital flight persists

The Bank of Russia data shows non-resident holdings in federal loan bonds dropped from 3.2% in June to 3% in July, underscoring the deepening isolation of Moscow's domestic debt market.

By Handelsavisen Newsroom · Automated 2026-07-27 16:08 UTC · 1 min read

Foreign investor exposure to Russia’s sovereign debt has contracted further, with non-resident holdings of federal loan bonds (OFZ) falling to 3% as of July 1, 2026.

The decline follows a reading of 3.2% at the start of June, according to data released by the Bank of Russia.

The drop to 3% marks a new low in foreign penetration, reflecting the long-term decoupling of Russian fixed income from global markets.

The continued erosion of foreign participation highlights the structural barriers facing international capital in the Russian bond market.

With sanctions and payment restrictions limiting access, the OFZ market remains increasingly reliant on domestic institutional investors and state-backed entities.

The drop to 3% marks a new low in foreign penetration, reflecting the long-term decoupling of Russian fixed income from global markets.

This development coincides with broader pressures on Russia’s external financial position.