Balance of payments, international investment position and external debt of the Russian Federation in 2023 (2024)

Balance of payments of the Russian Federation

Thecurrent account surplus in2023 decreased compared to2022due tothedecline inthetrade balance surplus andthegrowth indeficit ofother components ofthecurrent account.

Main components of the current account in 2015–2023, in billions of US dollars

Exports ofgoods declined by28.3% mainly duetoadrop invalue ofmineral rawmaterial supplies inthecontext ofdeteriorating international price conditions.

Imports ofgoods, onthecontrary, increased by9.7% compared to2022indicator, having exceeded the2021indicator, with multidirectional dynamics ofdifferent groups ofgoods.

Trade balance of the Russian Federation in 2015–2023, in billions of US dollars

Thedeficit inthebalance onexternal trade inservices grew to$34.1 billion duetoboth adecline inexports andanexpansion ofimports ofservices.

Exports ofservices decreased by15.3% andtotaled $41.2billion. Thekeyreason wasadecline inother services provided tonon-residents, including inthesegment ofcomputer services, construction andother business services: restrictive measures against Russian suppliers imposed byunfriendly jurisdictions hadanimpact. Atthesame time, thecost oftransportation fornon-residents byRussian transport companies remained virtually unchanged, andtheincrease inthenumber ofnon-residents visiting theRussian Federation ledtoanincrease inexports under theitem “Travel”.

Imports ofservices rose by6.3% to$75.3billion. Thedecrease inthevalue ofother services received from non-residents wasoffset byanincrease inexpenses ofRussians during foreign visits, recorded under theitem “Travel”, aswell asanincrease intransport services received byforeign carriers.

Composition of exports and imports of services in 2023, %

Thenegative balance oninvestment income hashalved: both income accrued infavor ofnon-residents andincome received byresidents from foreign investments have decreased. Thelargest role wasplayed bythenegative balance ofincome ondirect investment, including asaresult ofareduction inthedegree ofparticipation ofdirect investment investors indomestic business, aswell asareduction intheamounts ofdividends declared byRussian companies. Atthesame time, thesurplus inthebalance ofincome from other investments increased duetothegrowth ofincome received from abroad.

Balance on investment income by type of investment in 2015–2023, in billions of US dollars

Thedeficit inthebalance onsecondary income grew by11.2%, including duetoother transfers paid.

Balance on secondary income in 2015–2023, in billions of US dollars

Thefinancial account balance amounted to$43.3billion.

External liabilities oftheeconomy decreased by$8.1billion:

• the reduction in liabilities on direct investment was due to the repayments of liabilities on debt instruments to affiliated foreign companies, including as a part of the bond substitution mechanism;
• foreign liabilities in the form of portfolio investment decreased due to a reduction in foreign investment in Russian debt securities;
• debt on other investment increased due to a growth in debt on outstanding foreign trade settlements in the context of complicated logistics chains and as a result of rise in liabilities on accrued but not paid dividends.

Net incurrence of liabilities by residents by functional categories in 2015–2023, in billions of US dollars

Thegrowth infinancial assets in2023 totaled $35.2billion:

• foreign financial assets in direct investment rose mainly driven by an increase in investment in foreign equities;
• portfolio investment declined primarily due to a decrease in residents’ investments in foreign debt instruments;
• foreign claims in the form of other investment grew, among other things, due to the accumulation of residents’ funds in foreign accounts;
• reserve assets reduced mostly as a consequence of foreign currency transactions carried out on the domestic market under the fiscal rule.

Net acquisition of financial assets by residents by functional categories in 2015–2023, in billions of US dollars

International investment position of the Russian Federation

More significant decrease inforeign liabilities compared toassets ledtoanincrease innetinternational investment position oftheRussian Federation to$857.5 billion asofDecember31, 2023 from $768.1 billion asoftheendof2022.

Thetotal volume offoreign assets oftheRussian Federation decreased by$47.6 billion andamounted to$1,554.3billion. Thekeyreason wasnegative revaluations offinancial instruments andother changes associated with redomicilation.

Foreign assets of the Russian Federation, in millions of US dollars

Direct investment declined mainly duetoadrop invalue offoreign equity instruments under theinfluence ofexchange rate factor andasaresult ofother changes caused bythetransition ofparticipants offoreign economic activity totheRussian jurisdiction.

Portfolio investments declined duetoother changes associated with adecrease ininvestment indebt securities issued bynon-residents.

Other investment, incontrast, grew duetoincreased claims onoutstanding foreign trade settlements andaccumulation ofresidents’ funds inforeign accounts asayear earlier.

Reserve assets increased from $582.0 billion to$598.6billion.

Composition of foreign assets as of December 31, 2023, %

External liabilities oftheRussian Federation decreased by$137.0 billion to$696.7 billion duetonegative revaluations aswell asother changes.

Foreign liabilities of the Russian Federation, in millions of US dollars

Direct investment intheRussian Federation declined mainly asaresult ofnegative revaluations anddeoffshorization ofRussian business.

Portfolio investment reduced duetothesale ofRussian debt instruments bynon-residents.

Thedecrease indebt onother investment wasmainly duetotheredemption oflong-term loans byresidents.

Composition of foreign liabilities as of December 31, 2023, %

External debt of the Russian Federation

Theexternal debt oftheRussian Federation asofDecember31, 2023 amounted to$316.8billion, having decreased by$68.2billion, orby17.7%, since theendof2022.

Thereduction intheexternal debt wasmainly duetoadecline indebt ofother sectors by$55.4billion, orby22.6%, mostly onraised loans, including within theframework ofdirect investment relationship. Indebtedness ofgeneral government tonon-residents decreased by29.1%, orby$13.4 billion asaresult ofthedecrease indebt onsovereign debt securities denominated inboth Russian rubles andforeign currency. Atthesame time, total external debt ofcentral bank andbanks remained virtually unchanged.

External debt of the Russian Federation, in billions of US dollars

In2023 there wasadecrease inexternal debt forfinancial instruments denominated both indomestic andforeign currencies. Thereduction ofdebt indomestic currency issignificantly associated with thedecrease inliabilities onsovereign debt securities andnegative revaluation. Thereduction ofdebt denominated inforeign currencies mostly duetotheredemption ofloans raised within theframework ofdirect investment relationship. Duetotherepayment ofexternal debt onlong-term instruments, theshare ofshort-term debt inthetotal volume ofexternal debt increased slightly.

External debt of the Russian Federation in domestic and foreign currencies, in billions of US dollars