Page 58 - RusRPTJun21

5.0 External Sector & Trade 5.1 External sector overview
In the first quarter of 2021, Russia's foreign trade turnover amounted, according to the Bank of Russia, to $155.9bn (107.2% to the first quarter of 2020), including exports - $91.8bn (102.8%), imports - $64.1bn (114.2%). The trade balance remained positive at $27.7bn (in the first quarter of 2020 - positive, $33.1bn).
The import of goods to Russia has recovered fast on the back of the economic revival and the improving mood of consumers. The value of imports of goods increased by 14% year-on-year in January-March, supported by the recovery in demand.
Imports of goods have already clearly exceeded their pre-crisis level. The increase in imports has been driven by machinery, equipment and means of transport, which account for almost half of imports. The value of machinery and equipment imports increased by about 20% year-on-year.
Imports have been supported by a rapid recovery in investment and strong construction. According to statistics from the Association of European Businesses (AEB), sales of new construction machinery in Russia grew by almost 30% year-on-year in January-March, and sales of new passenger cars increased almost as fast in January-April. In January-March, the number of passenger cars imported was almost 50% higher than a year earlier. Other key product groups include the value of pharmaceutical imports doubled.
In addition, imports of many foods grew rapidly and imports of sugar and vegetable oils, for example, doubled. Their prices have risen rapidly in Russia in recent months, especially due to the weak domestic harvest in the autumn.
The growth of imports has also been supported by the recovery of Russian export revenues. The value of Russian exports of goods increased by 3% year-on-year in January-March.
Exports have been supported by strong growth in global demand for raw materials, supported by large-scale stimulus measures in many countries.
In January-March, the volume of Russian crude oil exports fell by another 20% year-on-year, but e.g. export volumes of natural gas, most metals, grain and raw wood rose sharply.
As global demand recovers, world market prices for many raw materials have also risen sharply. The average price of Urals oil, which is central to Russia, was already $60 a barrel in January-March, which is more than 20% higher than a year earlier. World market prices for metals, grain and raw wood have risen even faster than oil.
CBR has released its preliminary monthly BoP estimate for 4M21. The CA
58 RUSSIA Country Report June 2021 www.intellinews.com