Russia More Than Triples Current-Account Surplus to $167 Billion

[Don Pedro Dinero]

It seems, despite the image that some media may give us, that Russia is not doing badly financially.

Russia More Than Triples Current-Account Surplus to $167 Billion

Russia’s current-account surplus more than tripled from last year after notching record levels since the invasion of Ukraine, as declines in imports combined with booming revenues from energy and commodity sales abroad.

The surplus in the current account, the broadest measure of trade and investment flows, widened to almost $167 billion in January-July, compared with just over $50 billion during the same period a year earlier, the Bank of Russia said in a preliminary estimate published on Tuesday.

The proceeds have become a critical source of hard currency for the Kremlin since the invasion in February. A collapse in imports, driven in part by international sanctions over the war, has contributed to the surplus. It reached a preliminary $138.5 billion for the first six months of 2022.

When you consider how pathetic it is that sanctions have been imposed on Russia by the European Union, have resulted in things like this:

LMAO: India resells Russian oil to the European Union.

It is not surprising to read that Russia is profiting from this situation.

[pooya87]

When you consider how pathetic it is that sanctions have been imposed on Russia by the European Union, have resulted in things like this:

LMAO: India resells Russian oil to the European Union.

The thing about sanctions is that they have turned into a double edge sword that has been cutting the wielder more. For example when US sanctioned Venezuela they also harmed their own oil industry since it was the Americans who were running the Venezuela refineries who had to accept the billions of dollars in losses when they exited. Guess who is involved in those refineries today?

The funniest thing that I learned recently was that during US maximum pressure against Iran (still ongoing) they claimed they would decrease Iran's oil exports to zero, US navy has been running and depending on the fuel that Iran have been selling them. The same navy they try to threaten Iran with

[be.open]

It seems, despite the image that some media may give us, that Russia is not doing badly financially.

Russia More Than Triples Current-Account Surplus to $167 Billion

Russia’s current-account surplus more than tripled from last year after notching record levels since the invasion of Ukraine, as declines in imports combined with booming revenues from energy and commodity sales abroad.

The surplus in the current account, the broadest measure of trade and investment flows, widened to almost $167 billion in January-July, compared with just over $50 billion during the same period a year earlier, the Bank of Russia said in a preliminary estimate published on Tuesday.

The proceeds have become a critical source of hard currency for the Kremlin since the invasion in February. A collapse in imports, driven in part by international sanctions over the war, has contributed to the surplus. It reached a preliminary $138.5 billion for the first six months of 2022.

When you consider how pathetic it is that sanctions have been imposed on Russia by the European Union, have resulted in things like this:

LMAO: India resells Russian oil to the European Union.

It is not surprising to read that Russia is profiting from this situation.

It's funny that a multiple increase in Russia's trade surplus against the backdrop of a special operation is actively pedaled in the Western media as a symptom that things are going badly in Russia. They say the economy is exploding from the fall in imports and there is nowhere to put the money, even cry.

[Sithara007]

I guess Russia should be thanking the Western nations for the sanctions. Oil/Gas prices went up as a result of the sanctions. Natural gas prices at Dutch TTF were around $850 per thousand cubic meters when the conflict started. Now the prices stand at $2,200 per thousand cubic meters. And this means that Russian can reduce deliveries by 60% and still receive the same amount of money from the EU customers. And let's remember that the winter season is still 2-3 months away. Once the winter starts, natural gas prices are going to hit the stratosphere.

[stompix]

It is not surprising to read that Russia is profiting from this situation.

Yeah, total profits, then can you explain this?
https://www.reuters.com/markets/europe/russian-economy-declines-4-yy-q2-after-35-yy-increase-q1-econ-ministry-2022-07-27/

The Russian economy declined by 4.0% year-on-year in the second quarter of 2022 after a 3.5% rise in the previous three months, the economy ministry said on Wednesday.
The first quarter was expected to have been the last with sound growth before the Russian economy took a hit from sweeping sanctions for Moscow's decision to send troops into Ukraine on Feb. 24.
The ministry also said the economic decline deepened to 4.9% year-on-year in June after a fall of 4.3% in May.

Yeah, when Europe grows by 0.9% the European Union is going to collapse, when Russia's GDP is down 4%, the fall accelerated to 4.9% and their oil is selling at 74$ , Russia is doing soooooo great!
Now I understand why our discussion on the other thread went like this, confirmed, you see only what you want to see, suddenly when it comes to this government you fully trust all the data! Yeah, ironic!

[be.open]

It is not surprising to read that Russia is profiting from this situation.

Yeah, total profits, then can you explain this?
https://www.reuters.com/markets/europe/russian-economy-declines-4-yy-q2-after-35-yy-increase-q1-econ-ministry-2022-07-27/

The Russian economy declined by 4.0% year-on-year in the second quarter of 2022 after a 3.5% rise in the previous three months, the economy ministry said on Wednesday.
The first quarter was expected to have been the last with sound growth before the Russian economy took a hit from sweeping sanctions for Moscow's decision to send troops into Ukraine on Feb. 24.
The ministry also said the economic decline deepened to 4.9% year-on-year in June after a fall of 4.3% in May.

Yeah, when Europe grows by 0.9% the European Union is going to collapse, when Russia's GDP is down 4%, the fall accelerated to 4.9% and their oil is selling at 74$ , Russia is doing soooooo great!
Now I understand why our discussion on the other thread went like this, confirmed, you see only what you want to see, suddenly when it comes to this government you fully trust all the data! Yeah, ironic!

Dude, Russia has over 10,000 sanctions and Russia's GDP is down less than 5%. If this is your success, then what is failure?

ps winter is coming.

[Smack That Ace]

I guess Russia should be thanking the Western nations for the sanctions. Oil/Gas prices went up as a result of the sanctions. Natural gas prices at Dutch TTF were around $850 per thousand cubic meters when the conflict started. Now the prices stand at $2,200 per thousand cubic meters. And this means that Russian can reduce deliveries by 60% and still receive the same amount of money from the EU customers. And let's remember that the winter season is still 2-3 months away. Once the winter starts, natural gas prices are going to hit the stratosphere.

Russia is strictly complying with sanctions from the US and EU by not being able to receive back the gas turbines of the Nord Stream 1 pipeline from Germany, because of the embargo but Germany seems unhappy with this decision of Russia. I think they should be glad that the Russians are complying with the sanctions.

It seems that the plan to fill the EU gas reserves is not on track and winter is only 2-3 months away. I am still waiting to see how they will deal with it, other than lobbying citizens to limit gas use and start taxing more gas.

[davis196]

The Russian economy isn't just oil and gas. It has other industries, some of them were hit by the western sanctions, while others are pretty much OK. The fact that Russia has a positive export/import ratio doesn't mean that the majority of the Russian population will get out of poverty. The Russian political and economical elite plus the Russian war machine are the biggest beneficiaries from the export of expensive natural gas(and not-so-expensive oil). The "average Joe" in Russia will keep living in misery and stagnation.
The EU sanctions towards Russia were a stupid decision. You don't impose sanctions and you don't start an "economic war" against your main supplier of gas, oil and raw materials. Everyone with a functioning brain would come to such conclusion.

[stompix]

Dude, Russia has over 10,000 sanctions and Russia's GDP is down less than 5%. If this is your success, then what is failure?

But I thought sanctions are not doing a thing, now a 5% drop and further going down acceptable?
It crashed 7.8% during Covid with everything closed and now doing just fine with, just looking above, hundreds of billions in extra income but is going down by 4.9%?

I don't get it, simple I can't, how does this work? You get an extra 30% income from your work but when you come back home you suddenly owe money?  
This must be one economical miracle, or again the devil is in details, the export balance is so high up and the GDP is going down maybe because everything that was made in Russia was dependent on imports, so without imports which have crashed to zero, there is no production, only ladas without airbags and stabilizing aircraft for spare parts.
When you don't even have potatoes so serve at your local McPutin something really fishy must be happening in Mordor.

ps winter is coming.

Yeah, but the only resemblance here is that the guy who kept saying this died in season 1, what was the name of that episode, Baelor or Himars?

[Ucy]

It seems, despite the image that some media may give us, that Russia is not doing badly financially.

I have never doubted the fact that Russia is currently performing beyond expectations because it was given to her by the CREATOR through his servant who is currently on this forum. I'm impressed with Ethiopia too as she currently faces similar situation.

Anywhere the one who blesses Russia or Ethiopia says is blessed is blessed.

[samcrypto]

When you consider how pathetic it is that sanctions have been imposed on Russia by the European Union, have resulted in things like this:

LMAO: India resells Russian oil to the European Union.

It is not surprising to read that Russia is profiting from this situation.

There's money in a war and most probably, some countries are taking advantage of the situation where the EU countries have no other choice but to deal with a higher prices especially when India resell the Russian Oil at a most expensive price. Russia will not go into this war if they didn't make any study with this one, for sure they have a lot of plans and will continue the war until they feel the big impact of their action. Maybe this is good for Russia in terms of profit, but in general they kill a lot of innocent people and we will always remember that above anything.

[be.open]

Dude, Russia has over 10,000 sanctions and Russia's GDP is down less than 5%. If this is your success, then what is failure?

But I thought sanctions are not doing a thing, now a 5% drop and further going down acceptable?
It crashed 7.8% during Covid with everything closed and now doing just fine with, just looking above, hundreds of billions in extra income but is going down by 4.9%?

I don't get it, simple I can't, how does this work? You get an extra 30% income from your work but when you come back home you suddenly owe money?  
This must be one economical miracle, or again the devil is in details, the export balance is so high up and the GDP is going down maybe because everything that was made in Russia was dependent on imports, so without imports which have crashed to zero, there is no production, only ladas without airbags and stabilizing aircraft for spare parts.
When you don't even have potatoes so serve at your local McPutin something really fishy must be happening in Mordor.

I am not saying that the sanctions are not felt at all, because this is not true. About a thousand Western companies left the Russian market, and this cost them hundreds of billions of dollars in direct losses (but this also negatively affects Russia's GDP figures). Is this a problem for Russia? Is. But this is not a dramatic problem and it is also an opportunity. When the market is freed, there is a free place on it for internal development or for substitution by imports from friendly countries. And most of the companies that left simply lost the market and money, like Coca-Cola. Or do you really think that without sparkling water, the quality of life of Russians will worsen? Western sanctions in 2022 did not cause serious damage to Russia, because the West had already imposed all the really critical sanctions against Russia in 2014 after the annexation of Crimea, and Russia has completely learned to live under sanctions. But Europe did not learn any lessons after 2014 and did not take care of its energy security, for which it is now paying.

[NeuroticFish]

About a thousand Western companies left the Russian market, and this cost them hundreds of billions of dollars in direct losses (but this also negatively affects Russia's GDP figures). Is this a problem for Russia? Is. But this is not a dramatic problem and it is also an opportunity. When the market is freed, there is a free place on it for internal development or for substitution by imports from friendly countries.

I'm curious what will the "friendly countries" do about really important things there are very few companies produce them and they've put Russia onto sanctions list.
It's easy to mock the exit of "sparkling water", but I've read not long ago about increasing problems caused by the lack of components for airplanes. The news tell that the industry has started cannibalizing some of the already broken planes to obtain components for the rest. Of course, this cannot work for long term.

[avikz]

When you consider how pathetic it is that sanctions have been imposed on Russia by the European Union, have resulted in things like this:

LMAO: India resells Russian oil to the European Union.

It is not surprising to read that Russia is profiting from this situation.

Don't believe everything that western media tells you. India's internal demand of oil is so high that they import 90% of their oil demand from various countries. India sure did import oil from Russia, but never sold them to anyone. A country only sells something which is not absorbed by their internal demand. India is clearly not in a position to sell oil.

Read the official statement - https://www.thehindu.com/news/national/india-is-not-a-conduit-for-russian-oil-sales-jaishankar/article65491475.ece

Hope it helps!

[Argoo]

I guess Russia should be thanking the Western nations for the sanctions. Oil/Gas prices went up as a result of the sanctions. Natural gas prices at Dutch TTF were around $850 per thousand cubic meters when the conflict started. Now the prices stand at $2,200 per thousand cubic meters. And this means that Russian can reduce deliveries by 60% and still receive the same amount of money from the EU customers. And let's remember that the winter season is still 2-3 months away. Once the winter starts, natural gas prices are going to hit the stratosphere.

This is all temporary, while the old supply routes are being torn and energy suppliers for Europe are changing. The effect of sanctions in this area will be, but a little later. European countries have already refused to supply Russian coal, by the end of the year they will refuse oil, and then the turn will come to gas. In other sectors, the effect of sanctions is more obvious. Russia will have time to thank Europe for the sanctions. So far, indeed, some countries may abuse the partial chaos and hype in the energy market, but over time, everything will work out. That's when difficult times will come for Russia. The main thing is that Russia is losing the well-established European market forever.

[Ucy]

When you consider how pathetic it is that sanctions have been imposed on Russia by the European Union, have resulted in things like this:

LMAO: India resells Russian oil to the European Union.

It is not surprising to read that Russia is profiting from this situation.

There's money in a war and most probably, some countries are taking advantage of the situation where the EU countries have no other choice but to deal with a higher prices especially when India resell the Russian Oil at a most expensive price. Russia will not go into this war if they didn't make any study with this one, for sure they have a lot of plans and will continue the war until they feel the big impact of their action. Maybe this is good for Russia in terms of profit, but in general they kill a lot of innocent people and we will always remember that above anything.

There is money in war? How?
Russia was actually used to stop a full takeover of your World. It's just a pity people don't know the kind of sacrifice they make for the the rest of mankind...which is part of the reasons she is greatly rewarded with both wealth and power to rule the world for about 2 and half years. By the way, Russia loves Ukrainians more than those who pretend to help her fight Russia. Russia currently have the highest number of Ukrainian refugees and she has given the people alot of things for their survival.

You'll be surprised how many people support Russia even in Kiev. This may be proven in the future.

[cabron]

I guess Russia should be thanking the Western nations for the sanctions. Oil/Gas prices went up as a result of the sanctions. Natural gas prices at Dutch TTF were around $850 per thousand cubic meters when the conflict started. Now the prices stand at $2,200 per thousand cubic meters. And this means that Russian can reduce deliveries by 60% and still receive the same amount of money from the EU customers. And let's remember that the winter season is still 2-3 months away. Once the winter starts, natural gas prices are going to hit the stratosphere.

This is all temporary, while the old supply routes are being torn and energy suppliers for Europe are changing. The effect of sanctions in this area will be, but a little later. European countries have already refused to supply Russian coal, by the end of the year they will refuse oil, and then the turn will come to gas. In other sectors, the effect of sanctions is more obvious. Russia will have time to thank Europe for the sanctions. So far, indeed, some countries may abuse the partial chaos and hype in the energy market, but over time, everything will work out. That's when difficult times will come for Russia. The main thing is that Russia is losing the well-established European market forever.

Not actually. Of course EU can buy somewhere else. Latvia for instance swear not to buy Russian gas with ruble. After just a moment, they realize they'd be  fucked if they won't and so they have to buy ruble to buy gas.  

The narrative is just not working which is same for the narrative today that China's economy will crash in 30 days a.k.a Sept 11 as they were doing their military exercises.

There is money in war? How?

Of course there is money in war.
Weapons and Money sent to Ukraine to help them can not be traced.

[pooya87]

I'm curious what will the "friendly countries" do about really important things there are very few companies produce them and they've put Russia onto sanctions list.

They import it from other countries that are manufacturing those "really important things" and haven't placed Russia under sanctions.
Or buy it through a third party
Or do what Iran did and become self reliant... As the country with the most number of sanctions against us we have a saying that sanctions are an excellent opportunity. Basically anything that is sanctioned is manufactured domestically and with high quality. And that's a lot of things from medicine field to agriculture.

components for airplanes.

Iran is manufacturing plane components and is replacing whatever market Russia lost:
https://simpleflying.com/iran-supplying-aircraft-parts-russia/
China is apparently another alternative:
https://www.aerotime.aero/articles/31344-chinese-companies-ready-to-deliver-aircraft-parts-to-russia

Weapons and Money sent to Ukraine to help them can not be traced.

They are somewhat traced when they find their way into the black market!

[be.open]

About a thousand Western companies left the Russian market, and this cost them hundreds of billions of dollars in direct losses (but this also negatively affects Russia's GDP figures). Is this a problem for Russia? Is. But this is not a dramatic problem and it is also an opportunity. When the market is freed, there is a free place on it for internal development or for substitution by imports from friendly countries.

I'm curious what will the "friendly countries" do about really important things there are very few companies produce them and they've put Russia onto sanctions list.
It's easy to mock the exit of "sparkling water", but I've read not long ago about increasing problems caused by the lack of components for airplanes. The news tell that the industry has started cannibalizing some of the already broken planes to obtain components for the rest. Of course, this cannot work for long term.

And who promised that it would be easy? There are problems with airplanes, cars, microelectronics, software - they are serious and need to be addressed. Of course, Russia will cope with these challenges one way or another. But that won't stop the Russians from watching the impressive spectacle of EU energy suicide. Any sane person understands that it is impossible to replace the falling volumes of energy supplies either this winter, or even next. And with the planes, we'll come up with something, don't even hesitate. If a country is capable of developing sixth-generation fighters, it will somehow figure it out with passenger airliners.

[NeuroticFish]

components for airplanes.

Iran is manufacturing plane components and is replacing whatever market Russia lost:

Interesting, I didn't know. Thank you.

And who promised that it would be easy? There are problems with airplanes, cars, microelectronics, software - they are serious and need to be addressed. Of course, Russia will cope with these challenges one way or another. But that won't stop the Russians from watching the impressive spectacle of EU energy suicide. Any sane person understands that it is impossible to replace the falling volumes of energy supplies either this winter, or even next. And with the planes, we'll come up with something, don't even hesitate. If a country is capable of developing sixth-generation fighters, it will somehow figure it out with passenger airliners.

Did it occur to you that in the same way as "it won't be easy, but Russia will cope", also EU will cope? Of course, it will not be easy, as it's a harsh awakening.
But, as a friend of mine use to say, every kick in the ass produce another step forward. EU may do now (sadly under pressure) some moves they should have done from the first place.
Right now, let's face it, it's a situation both sides are losing similarly and both sides can, similarly, evolve.