Page 46 - RusRPTSept20

5.2.2 Current account dynamics
The surplus of the current account of the balance of payments of the Russian Federation, according to the preliminary estimate of the Bank of Russia, in January-July 2020 decreased to $24.6bn, which is almost half the level of the comparable period last year.
The decrease in the value of the indicator was mainly due to the contraction of the trade surplus by $44.4bn as a result of a more significant decrease in the export of goods compared to their import against the background of an unfavourable international situation in the main Russian export goods.
The aggregate deficit of the remaining components of the current account narrowed mainly as a result of a narrowing of the deficit in the balance of services and a decrease in payments of investment income in favour of non- residents.
The balance of financial transactions of the private sector in January-July 2020, according to preliminary data, was $34.9bn, $22.8bn in the comparable period of 2019.
In contrast to the situation a year earlier, when banks 'operations played a decisive role in the formation of the indicator, in the period under review, the key was an approximately equal volume increase in foreign assets of other sectors and a decrease in banks' liabilities to non-residents.
International reserves decreased by $8.8bn, which was associated with the repayment of sovereign debt, as well as sales of foreign currency by the Bank of Russia.
Russia key trade results $bn
Indicators
January - July 2020 (estimate)
January - July 2019
Current account
24.6
46.9
Trade balance
53
97.4
Private sector financial balance
34.9
22.8
Change in reserve assets *
-8.8
43.1
source: CBR
46 RUSSIA Country Report September 2020 www.intellinews.com