Balance of payments, international investment position and external debt of the Russian Federation in the 1st quarter of 2024
The Bank of Russia published the balance of payments, international investment position and the external debt of the Russian Federation in the Q1 of 2024 and revised indicators of 2023 due to the receipt of additional reporting data as of June 28, 2024.
Balance of payments of the Russian Federation
|
billions of US dollars |
|||||
|
Key Aggregates |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
|
Current account |
15.6 | 7.7 | 15.5 | 11.3 | 22.6 |
|
Trade balance |
30.5 | 26.3 | 33.4 | 31.4 | 33.8 |
|
Balance on services |
-7.6 | -8.9 | -10.3 | -8.4 | -7.3 |
|
Balance on primary and secondary income |
-7.3 | -9.6 | -7.6 | -11.7 | -3.9 |
|
Balance on financial account |
13.0 | 4.7 | 12.1 | 11.7 | 23.8 |
|
Balance on financial account, excluding reserve assets |
18.2 | 6.1 | 14.3 | 12.9 | 30.7 |
|
Net acquisition of financial assets, excluding reserve assets |
6.4 | 10.9 | 22.5 | 3.1 | 23.7 |
|
Net incurrence of liabilities |
-11.7 | 4.7 | 8.2 | -9.8 | -7.0 |
|
Reserve assets |
-5.1 | -1.4 | -2.3 | -1.2 | -6.9 |
The current account surplus in January — March 2024 increased compared to Q1 of 2023 due to an increase in trade balance, as well as a decrease in deficit of balance on primary and secondary income.
Main components of the current account, in billions of US dollars
The decline in imports of goods by 10%, among other things, is related to a number of systemic restrictions that have made supply chains complex. Exports of goods decreased by 4% mainly due to a drop in world prices for some fuel and energy goods and metals.
Trade balance of the Russian Federation, in billions of US dollars
The deficit in foreign trade in services remained virtually unchanged compared to the previous year. The increase in deficit relative to the preliminary estimate is associated with the revision of the imports of travel services.
Balance on services, in billions of US dollars
The total deficit in balance on primary and secondary income decreased due to a reduction in investment income accrued by Russian companies in favor of non-residents, as well as personal transfers payable.
Balance on financial account amounted to $23.8 billion.
Net lending by sectors, in billions of US dollars
The growth in financial assets was $16.8 billion and was driven by an increase in claims on other investment to non-residents due to a rise in balances of funds on current accounts and deposits with a slight decrease in assets in the form of other functional categories. The reduction in the growth in financial assets compared to preliminary estimate is related to a revision of other investment data, including claims to non-residents on outstanding foreign trade settlements.
Net acquisition of financial assets by residents by functional categories, in billions of US dollars
External liabilities reduced by $7.0 billion. The key drivers were a decline in direct investment liabilities due to a decrease in liabilities on raised loans, payment of dividends, as well as non-residents’ withdrawals from the Russian companies’ equity.
Net incurrence of liabilities by residents by functional categories, in billions of US dollars
International investment position of the Russian Federation
The growth in net international investment position of the Russian Federation from $857 billion to $882 billion was due to a reduction in external liabilities with a slight growth in foreign assets.
Foreign assets and liabilities of the Russian Federation, in billions of US dollars
|
|
Assets | Liabilities | ||
|---|---|---|---|---|
|
Position as of December 31, 2023 |
Position as of March 31, 2024 |
Position as of December 31, 2023 |
Position as of March 31, 2024 |
|
|
Total |
1,553.2 |
1,556.8 |
696.1 |
675.0 |
|
Direct investment |
313.7 |
309.3 |
333.7 |
317.9 |
|
Portfolio investment |
68.0 |
68.8 |
148.2 |
148.7 |
|
Financial derivatives |
0.4 |
0.4 |
0.8 |
0.4 |
|
Other investment |
572.5 |
588.1 |
213.4 |
207.9 |
|
Reserve assets |
581.6 |
590.4 |
|
|
Foreign assets of the Russian Federation increased by $3.7 billion and amounted to $1,557 billion. The key drivers were transactions reflected in the balance of payments, partially offset by other changes related, among other thing, to the relocation of foreign companies in Russian jurisdiction.
External liabilities of the Russian Federation decreased since the end of 2023 by $21.2 billion to 675 billion with an equivalent impact of transactions, negative revaluation and other changes.
International investment position of the Russian Federation, in billions of US dollars
External debt of the Russian Federation
External debt of the Russian Federation as of March 31, 2024 amounted to $303 billion (15% of GDP over the last 12 months), having decreased by $14.1 billion, or by 4.4%, since the end of 2023.
The reduction in the external debt was due to a decline in other sectors’ liabilities by 4.8% mainly on raised loans, including within the framework of direct investment relationship. Foreign debt of central bank and banks declined by 4.2%. General government’s indebtedness to non-residents decreased by 2.9%.