Russia's Balance of Payments in Q3 2020

In Q3 2020, Russia’s favorable trade balance plunged compared to the same period last year due to a contraction in exports under a relatively stable volume of export deliveries. Nevertheless, despite a combination of the most adverse factors, current account balance remained favorable. Having said that, in July-September there was net outflow of capital that was due primarily by a reduction in financial liabilities before non-residents of other sectors of economy in the wake of raising geopolitical risks and decline in the interest of investors towards assets of developing countries.As a result, in Q3 2020, ruble’s exchange rate dropped by 14% and from the start of the year – by 29%.