Page 48 - RusRPTJun19

The trade surplus has also grown from $44.2bn in 1Q18 to $45.3bn in 1Q19. The rise in c/a and trade countered the crude oil price trend (Urals was down 2.9% y/y) and the accompanying 0.5% y/y slide in the volume of exports.
However, the bulk of the surplus lies in the dynamic of imports, which fell more sharply than exports (-2.6% y/y in 1Q19).
According to the Bank of Russia, the current account surplus of the balance of payments of the Russian Federation in 2018 reached a record value of $113.8bn ($33.2bn in 2017).
The defining growth factor was the strengthening of the balance of foreign trade in goods by 1.7 times against the background of an improvement in the international price situation of the main goods of Russian exports and the preservation of import volumes at almost the same level as the previous year. The aggregate negative contribution of other components of the current account has decreased.
A significant increase in the positive balance of the current account of the balance of payments led to an increase in net lending to the rest of the world. The balance of private sector financial operations in 2018 was $63.3bn compared to $25.1bn a year earlier, it was formed approximately in equal proportions by net repayment of obligations and an increase in foreign assets. The decrease in foreign liabilities occurred to a significant extent on current accounts and deposits in Russian banks, and also as a result of a reduction in the loan debt of other sectors. The growth of assets was carried out largely in the form of direct investment. The international reserves of the Russian Federation increased by $38.2bn in 2018 against $22.6bn in 2017.
48 RUSSIA Country Report June 2019 www.intellinews.com