Russian exports soaring high |
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RUSSIA'S RECORD BREAKING TRADE SURPLUS
• Russia's current account surplus, a major measure of trade, has soared high. An estimation by a German think tank claimed to reveal that Russia's oil and gas revenues spiked high to about 1.8 trillion rubles in the month of April.
• The statistics were also confirmed by Bloomberg that oil revenues from Russia have been 50 per cent higher for this year.
REASON BEHIND THE SURPLUS
• Russian Finance Minister Anton Siluanov confirmed that the export inflows remained unchanged. Despite the European sanctions, Moscow is an active exporter of its oil, and Europe continues to import Russian natural gas.
• There was a sharp decline in imports because of the restrictions imposed by the west. The finance ministry under the Kremlin government also estimated to earn a revenue equivalent to $9.6 billion this May.
• In spite of the trade restrictions and the consequent shutdown of many supply chains, Russia managed to run a surplus. It is also estimated that Moscow generated approximately $20 billion revenue from crude.
• Despite the public demonstrations of sanctions imposed on Russia by the European Union bloc and the massive censure, the bloc had accounted for 43% of Russia's exports.
WHAT NEXT?
• The EU is still in the gray zone to impose a ban on Russian oil. In the fifth round of its sanctions on Russia, it decided to ban the imports of coal and other solid fossil fuel from Russia. The reaction of Russia to the sanctions was to ask western countries to pay for the former's exports in Rubles or gold.
• Asian players including China and India have bought Russian exports at discounted prices, allaying the situation
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