Page 75 - RusRPTAug23

The impact of reduced oil and gas revenues on corporate funds is noteworthy, as the energy sector plays a vital role in the Russian economy. Fluctuations in oil and gas prices can significantly affect the financial performance of energy companies, which in turn, may influence the overall corporate funds available in the market.
Furthermore, the timing of tax payments can also lead to fluctuations in corporate funds. Companies often make significant tax payments in specific months, which can temporarily impact their available funds. This is a common practice in many countries where companies are required to make regular tax contributions to the government.
In June, household funds experienced significant growth, rising by 816bn rubles (+2.1%, compared to +1.2% in May) due to continued substantial budgetary payouts.
The main driver of this increase was the growth in placements on ruble current accounts, which saw a rise of 820bn rubles (+6.2%). Additionally, ruble-denominated time deposits saw a slight increase of 87bn rubles (+0.4%), reflecting the attractiveness of deposit rates (7.83% in the third decade of June compared to 7.75% in the third decade of May).
However, the balances in foreign currency decreased by 1.1bn US dollars (-91bn rubles in ruble equivalent, -2.4%). This decline can be attributed to the ongoing conversion of foreign currency funds into rubles, overseas transfers, and withdrawals of cash during the vacation season.
The growth of funds in escrow accounts experienced a slight slowdown compared to May (+99bn rubles, or +2.3%, compared to +3.8% in May). This was due to the increase in the volume of disclosed accounts (preliminarily reaching 254bn rubles in June after 173bn rubles in May) caused by the seasonal increase in the completion of construction projects.
The rise in household funds is closely linked to the government's financial initiatives, including budgetary payouts. These measures have contributed to increased liquidity in the economy and provided support to households during challenging economic conditions.
The preference for ruble current accounts and time deposits can be attributed to the stable and competitive interest rates offered by banks. The attractiveness of these accounts may encourage individuals to maintain and grow their savings, which is essential for financial stability and planning for future expenses.
The decline in foreign currency holdings reflects individuals' preferences for converting funds into rubles, which may be influenced by factors such as
75 RUSSIA Country Report August 2023 www.intellinews.com