Russian Federation 

Russian Federation country policy

Policy established 03 May 2011

• ILC, bank guarantee or central public guarantee (conditional)
• The country ceiling is 2000 mln euro
• Early warning signal 1000 mln euro
• - of which was used as at 2011-12-31 346 mln euro

Country class: 3

Voor banken: speciale voorwaarden

Banks: special conditions 

Russian Federation country facts

Atradius Dutch State Business Economic Research
Country Report last updated 30 March 2011

Country RUSSIA 

Political Situation
Stable

Head of state
President Dmitry Medvedev.

Form of government
Government formed by the Party United Russia and non-partisan technocrats, headed by p.m. Vladimir Putin.

Internal Economic Situation
Recovered From Deep Recession

General situation
The Russian economy was severely hit in 2009 by sharply fallen oil prices, the global credit crisis (less access to external financing) and tight domestic credit conditions: real GDP plunged by 7.2%. Recession, illiquidity and fallen asset prices caused cash flow problems in the private sector; smaller corporates and banks (>1000) were especially hurt. Since 2009Q3 economic recovery resulting in a real GDP-growth of 4% in 2010 despite the summer drought that tempered the upswing because of loss in agricultural output (appr. 1/3). The Russian economy is very monopolized with state-controlled giants (Gazprom, Rosneft, Sibneft, etc) or state-loyal private companies (Lukoil, Rusal, etc) that dominate GDP. The opaque executive/judiciary system and widespread corruption/maffia practices have raised concerns about the business environment and property rights and are spoiling the investment climate. After the low mid 2010, inflation is rising (9.5% Febr 2011) and well above CBR-targets (6-7%).  
 
External Economic Situation  :  Strong

Main sources of foreign exchange
Oil/gas (67%), metals (13%), machinery (5%).

Main foreign markets
EEC’s (37%), EU (35%), Asia (12%), USA (5%).

Main expenses of foreign exchange
Capital goods (43%), food (18%), chemicals (17%).
 
Balance of payments  
External accounts reflect Russia’s strong energy position: (very) large trade/current account surpluses in combination with large deficits on the capital account (incoming FDI less outgoing (non) residential capital). After a break in 2009 reserves have risen further and the rouble exchange rate has recovered thanks to recovering oil prices this year.