- Dec 29, 2008
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Russia's economic woes are worsening, with the latest blow coming from a collapse in its current account.
The nation posted a current-account surplus of $5.4 billion for the April-June quarter, which marks a 93% plunge from a record $76.7 billion in the same period last year, Bank of Russia data shows. That's also the smallest excess since the third quarter of 2020.
It shows the heavy blow that Western economic sanctions — imposed on the Kremlin in response to its war on Ukraine — have dealt to the country's economy by squeezing its energy exports.
The worsening trade dynamics are also reflected in the plunging fortunes of the ruble. The Russian currency tumbled to a 15-month low of about 94.48 for each dollar earlier in July, hit hard by the country's weakening terms of trade.
"The decline in the surplus of the balance of the external trade in goods in January — June 2023 compared to the comparable period of 2022 was caused by a decrease in both the physical volumes of export deliveries and the deterioration in the price situation for the basic Russian export commodities, energy commodities made the most significant contribution to the decline in the value of exports," the Bank of Russia said.
Moscow's key source of revenue is through sales of its oil and gas products, but price caps and bans imposed on Russia's energy exports following its unprecedented attack on Ukraine have dealt a huge hit to its commodities business.
markets.businessinsider.com
The greatest danger Russia faces today is from its own grossly incompetent government.
The nation posted a current-account surplus of $5.4 billion for the April-June quarter, which marks a 93% plunge from a record $76.7 billion in the same period last year, Bank of Russia data shows. That's also the smallest excess since the third quarter of 2020.
It shows the heavy blow that Western economic sanctions — imposed on the Kremlin in response to its war on Ukraine — have dealt to the country's economy by squeezing its energy exports.
The worsening trade dynamics are also reflected in the plunging fortunes of the ruble. The Russian currency tumbled to a 15-month low of about 94.48 for each dollar earlier in July, hit hard by the country's weakening terms of trade.
"The decline in the surplus of the balance of the external trade in goods in January — June 2023 compared to the comparable period of 2022 was caused by a decrease in both the physical volumes of export deliveries and the deterioration in the price situation for the basic Russian export commodities, energy commodities made the most significant contribution to the decline in the value of exports," the Bank of Russia said.
Moscow's key source of revenue is through sales of its oil and gas products, but price caps and bans imposed on Russia's energy exports following its unprecedented attack on Ukraine have dealt a huge hit to its commodities business.
Russia's economy dealt a crushing blow as its current-account surplus collapses by 93%
Russia's economy took a blow after its current-account surplus tanked 93% to $5.4 billion last quarter from the year before, per the Bank of Russia.
markets.businessinsider.com
The greatest danger Russia faces today is from its own grossly incompetent government.
