Russia: Trade surplus narrows in June
July 25, 2012
In June, exports dropped 4.7% over the same month last year to reach USD 42.1 billion, which contrasted the 3.5% expansion registered in May. Meanwhile, imports dropped 2.0% to USD 27.2 billion, down from May's 1.3% decrease. As a result of the deterioration in exports, the trade surplus narrowed to USD 14.9 billion in June, which represents a deterioration over the USD 16.4 billion surplus registered in the same month last year and marks the smallest surplus since August 2011. Meanwhile, the price for Ural oil - Russia's key export commodity - picked up in recent weeks, as the EU ban on Iranian oil, approved in January and which came into force on 1 July, spurred demand for Russian crude. On 6 August, Ural oil traded at USD 110.02 per barrel, which was 11.4% above the price reached on the same day of the previous month and up 3.9% on a year-to-date basis. If the upward trend continues, export revenues are likely to pick-up going forward.
Author: Armando Ciccarelli, Head of Data Solutions