Russia suffers trade deficit in June as balance of payments turns red
The current account of Russia’s balance of payments has turned negative, hitting $1.4 billion in June 2023, Russian news agency Interfax reported on July 11 with reference to the central bank’s estimates.
This is due, in particular, to a seasonal factor – the declaration of dividends by Russian companies.
"Such a situation has already been observed in similar periods of previous years (when there were) unfavorable price conditions for Russian exports," the Bank of Russia said.
A negative current account balance for the month in Russia was last observed three years ago. In August 2020, the deficit was $1.4 billion, and in June 2020 – $4.4 billion.
Forbes, citing data from the central bank, reports that the decrease in the balance of trade surplus resulted from a reduction in exports as well as worsening price conditions for Russia's primary export goods.
Energy products made the largest contribution to the decline in the total value of exports, according to the explanation.
The Bank of Russia explained that the deficit in the balance of foreign trade in services increased due to the resumption of imports of services, in particular as a result of the revival of foreign travel by Russian citizens at the beginning of the vacation season.
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