Page 72 - RusRPTSept23

mechanism of tax and tariff regulation of mineral fertilisers exports is needed. The fine-tuning envisages setting a reduced ad-valorem rate of the export customs duty on mineral fertilisers... at 8% from September 1, 2023 until December 31, 2024," the accompanying note read. The key fertiliser producers would thus pay about 10% of the operating profit, or 15% of the free cash flow on average for 2022 to the budget. The charge is not expected to hurt the industry significantly in the long term, the ministry said.
5.2.2 Current account dynamics
According to the Bank of Russia’s preliminary estimate, the current account surplus of the balance of payments of the Russian Federation in January — July 2023 amounted to $25.2bn, which is significantly lower than in the corresponding period of 2022. The decisive role in the dynamics of the indicator was played by a decrease in the surplus of trade balance by 68.4%. According to the first estimate of July 2023, the current account surplus totalled $1.8bn, which is close in value to the adjusted indicator of June 2023: a surplus of $1.2bn.
Key Aggregates in details:
· a decline in the surplus of trade balance in January – July 2023 was caused by the drop in the value of exports as a result of a decrease in physical volumes of exports and a decrease in world prices for the main goods of Russian export compared to the same period of the previous year;
· the recovery in the value of imports of goods continued, the value of which in January – July 2023 exceeded the indicator of comparable period in 2022, taking into account, among other things, the revision of data for the 2nd quarter of 2023;
· the deficit in the balance of the external trade in services in January – July 2023 increased more than twice mainly as a result of the revival of the tourist flow from Russia abroad;
· total deficit in primary and secondary income in January – July 2023 reduced mostly due to a decrease in dividends declared and accrued by Russian companies in favor of non-residents;
· the acquisition of foreign assets in January – July 2023 occurred mainly in the categories “other investments” and “direct investments”;
· the reduction in external liabilities of the economy in the 1st quarter of 2023 was offset by their subsequent growth, including as a result of fundraising in the “other investments” category.
RUSSIA Country Report September 2023 www.intellinews.com