Page 66 - RusRPTFeb23

budget rule. The denomination of the money transferred has also been changed from dollars to yuan.
Rapidly growing imports from China are also undermining the current account surplus as Russia puts in place a new parallel imports regime to replace western goods that are no longer arriving. Turkey is also playing a leading role in the new trade routes.
“This worsening of the current account from mid-2022 was due to a rebound in imports, mainly from China, and lower exports due to falling energy export volumes and commodity prices. We think this will continue as Russia fails to reorientate energy exports from Europe to Asia and energy prices remain below their 2022 highs. Our forecast is for the surplus to shrink to 3% of GDP this year and to 2% in 2024,” says Peach. “We don’t think the impact of this is being fully appreciated by most commentators and we expect the ruble to come under further pressure this year.”
66 RUSSIA Country Report February 2023 www.intellinews.com