Although the Russian economy is limping along due to Western sanctions and lack of diversification away from the production of hydrocarbons, recent relatively high oil prices, and a devalued ruble, have allowed the Russian state to bank money away due to a record high balance of payments.
Russia has very little sovereign debt and the Kremlin’s foreign currency reserves also increased to $472 billion. The federal budget recorded a surplus in 2018 for the first time in 7 years. Although a significantly devalued ruble, the Russian currency, inflicts hardship on the Russian population, it is very good for a country who’s main export is petroleum sold in USD.
In the year 2018 balance-of-payments surplus of Russia increased 3.5 times — to a record 114.9 billion. Helped by rising oil prices, increased exports and a relatively weak ruble. This, in turn, not only contributed to the achievement of federal budget surpluses and the accumulation of reserves, but also increased the attractiveness of investments in Russian assets, reported Russian state news outlet RIA Novosti.
Determining became the trade balance: surplus external compare operations NIJ with 2017 year grew 1.7 times to 194.4 billion. While income from the export of petroleum and petroleum products increased by 14.4 billion, update analysts “VTB capital”, added RIA.
Tsarizm reported recently that Russia is rapidly increasing its gold reserves as well.