The latest data from Russia's Finance Ministry reveals that the country's external debt has climbed to nearly $62 billion, marking the highest level in 20 years. This surge is primarily attributed to increased borrowing as Russia finances its ongoing military operations in Ukraine. Foreign investors are reported to hold about $61.97 billion in Russian government debt, predominantly in long-term bonds. This situation mirrors the past peak of $76.5 billion reached in January 2006, after which Russia's external debt had only briefly exceeded $60 billion.

In addition to external debt, the Central Bank of Russia reported that the total combined state and private external debt rose by 10.4% in 2025, reaching approximately $319.8 billion. This rise is linked to increased debt financing coupled with a recent strengthening of the ruble, which has inflated the value of dollar-denominated debts. The current financial landscape suggests that Russia is relying heavily on both domestic and international borrowing to support its budget amid ongoing geopolitical strains.

Furthermore, domestic borrowing is also on the rise, with the Finance Ministry estimating the internal debt to have reached 34.81 trillion rubles. This increase in domestic borrowing indicates a strategic pivot to secure funding from within the country, reflecting the challenges faced by Russia in accessing international credit markets due to sanctions and economic isolation. The implications of these rising debt levels are significant, as they may influence Russia's economic stability and its ability to sustain military and other state expenditures in the context of prolonged conflict and international sanctions.