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depending on product segment. The storage market is running tight as deals for warehouses fell by 43% year-on-year in 2022, a problem linked to the excessive centralization of the Russian economy: 55% of Russia’s commercial storage capacity for goods is located in the agglomeration around Moscow, skewing logistical supply chains and costs as well. Retailer group X5 estimates that the net 2.7% decline in demand for food and other basics seen last year from April-November reflected out-migration despite greater pressure to save money by not dining out or spending on other services outside the home. Net revenue turnover from car sales fell 41% last year and the production of medicines declined through 4Q after showing growth, bottoming out in December with a year-on-year decline of 30%.
Assertions from officials such as economy minister Maxim Reshetnikov that the fall in consumer demand has hit bottom have repeatedly proven false. Yet economic mobilization and the creation of a new ‘garrison economy’ continue, pointing to a new (no) growth model for Russia. The formal mobilization of business and markets is creating conditions for what may be termed a «garrison» economy.
5.0 External Sector & Trade 5.1 External sector overview
As sanctions on Russian energy were only implemented towards the end of 2022—and as global prices for oil and gas soared—Russia's goods exports reached a record $532bnin 2022, resulting in an all-time high trade surplus of $316bn.
The export of oil and gas reached $333bn in 2022—representing 63% of total goods exports, with crude oil accounting for $142bn, oil products for $83bn, and natural gas for $108bn.
81 RUSSIA Country Report March 2023 www.intellinews.com