Russia's presence in the U.S. government debt market continues to be steadily wound down. In June, holdings of U.S. Treasury securities fell by another $2 million, reaching $27 million. This is further confirmation that the process of de-dollarizing state reserves, initiated several years ago, is irreversible.
The structure of Russia's portfolio shows a clear tilt toward long-term instruments: $23 million was placed in long-term Treasury securities, down from $26 million a month earlier, while short-term obligations, on the contrary, showed a slight increase—from $3 million to $4 million. Such dynamics indicate a lack of any interest in building positions, even as a tactical move.
A trend that cannot be ignored
It is worth noting that the June decline interrupted a two-month streak of growth, when figures stood at $26 million and $25 million in April and March, respectively. However, there is no question of any trend reversal. Recall that the peak of Russian investments in U.S. government bonds came in 2018, when the portfolio collapsed from $96 billion to $14.9 billion over two months. Since then, the volume has merely fluctuated at the level of statistical noise.
Notably, the regulator has repeatedly emphasized that U.S. Treasury securities are not part of the official reserve structure. The current $27 million is, in essence, residual positions held by private investors and institutional participants, unrelated to state policy.
Where the money is going
Against the backdrop of a symbolic presence in U.S. debt, there is a clear migration of capital into alternative assets. By the end of July, private investors on the Moscow Exchange held over 10.8 tonnes of exchange-traded gold, adding nearly 2 tonnes since the start of the year. At the same time, a boom is being recorded in the stock market: individual investments in securities reached 142.9 billion rubles in July, while stock purchases grew 1.9 times year-on-year.
For comparison, the largest holders of U.S. debt—Japan ($1.16 trillion), the United Kingdom ($939.9 billion), and China ($633.4 billion)—continue to build up or maintain their positions. The gap between these players and Russia is now measured not in billions, but in orders of magnitude.
My view: Russia has finally cemented its status as a country for which U.S. government bonds have lost all investment appeal. This is not merely a political gesture, but a pragmatic choice in favor of assets with yields independent of Washington. The trend toward gold and the domestic stock market will only intensify, especially amid ongoing geopolitical turbulence.