Daily Management Review

Record Current Account Surplus Amounting To $227 Bln Posted By Russia For 2022


Record Current Account Surplus Amounting To $227 Bln Posted By Russia For 2022
The current account surplus of Russia touched a record high in 2022, according to the central bank of the country, as lower imports and strong oil and gas exports kept foreign money flowing in into the country even in the face of Western sanctions aimed at isolating the Russian economy from the rest of the world.
The current account of Russia - which is the the difference between all money that comes into a country through trade, investment, and transfers and the amount of money that flows out - was $227.4 billion in 2018, which was 86% higher compared to 2021 figures .
Russian imports fell sharply last year as a result of an exodus of Western firms following the imposition of broad sanctions on Moscow for its invasion of Ukraine.
However, the Kremlin has attempted to replace revenue lost from oil and gas exports to Europe by shifting its focus to China, India, and other Asian countries.
According to Chinese customs data, trade between Russia and China reached a record high of $190 billion last year.
As imports declined, Moscow's trade balance increased to $282.3 billion in 2022, up from $170.1 billion the previous year.
Higher commodity prices throughout 2022, according to the central bank, helped push the current account higher, while imports gradually recovered in the second half of the year.
Russia's export revenues will face new challenges in 2023, when Western and Japanese sanctions on Russian oil go into effect.
From February 5, the Group of Seven major economies will extend an oil embargo beyond crude to include Russian oil products.
According to analysts, this could reduce Russian oil output by up to 1 million barrels per day (bpd) in the first quarter of 2023.
According to a senior Russian source, Russia's oil product output is expected to fall sharply this year to 230 million tonnes from 272 million.