Russia has massive trade surplus despite sanctions

By Rhod Mackenzie

Of course it was never really going to happen it was withful thinking from the Globalists and their useless idiots and no amount of them repeating was going to make it happen,
Now lets look at the reality, According to the results of last year, Russia took third place in the world in terms of having a trade surplus. The total amount of this trade settlement surplus was 151 billion dollars. So what does this mean  for the country and its economy.
According to data from national statistical services, China was the leader in terms of trade surplus ($991 billion) in 2024. Germany ranked second with its surplus  amounting to $258 billion.
Russia's in third's trade surplus was $151 billion. It was folowed
Ireland ($98 billion) and the Netherlands ($89 billion) who were in fourth and fifth place, while the top ten countries with the largest trade surpluses also included Switzerland ($77 billion), Saudi Arabia ($73 billion), Norway ($69 billion), Brazil ($59.5 billion), and Italy ($55 billion).
It is noteworthy that within a single year, Russia our nation has risen four positions in the ranking. According to the results of 2023, Russia's ranking was seventh, with a trade surplus of 121 billion dollars.
With regard to the matter of trade deficits, the United States recorded the largest one in 2024, with a value of $1.3 trillion. In Great Britain, the figure was $303 billion. India is in third place, with a deficit of $263 billion. France (111 billion) and Türkiye (82 billion) were also in the top five.
In general, it is advisable to avoid deficits and to instead focus on generating a surplus. Its beneficial to a country to produces sufficient goods or services to meet its own needs and sells the surplus to other markets, thereby generating revenue.
"When a deficit occurs, the country's national debt increases because more is bought than sold, as is the case with the US," says Ekaterina Novikova, associate professor at the Department of Economic Theory at the Plekhanov Russian University of Economics.
Russia is a country with significant natural resource deposits. It is involved in the sale of oil, gas, coal and metals. Consequently, the country's trade surplus is not unexpected.
Since 2022, Russia has received a significant number of orders for domestic products, including mechanical engineering, nuclear energy, electronics, space and military developments, as Novikova notes. This is due to the country's strategic focus on the Asian market.
Specifically, last year, the total value of exports to Asia was 329 billion dollars, marking a 7.6% increase compared to 2023 figures. It delivered products to Africa worth 24 billion dollars, representing an increase of 14.7%. The volume of exports to Europe amounted to only 68 billion dollars, representing a decrease of 20%, according to the analyst.
At the same time, Maxim Chirkov, associate professor of the Department of Economic Policy and Economic Measurements at the State University of Management, has stated that the discrepancy between the growth of Russian exports and the development of imports can be partly explained by difficulties with imports due to sanctions. In summary, while the option to procure goods and services from external sources exists, it is neither straightforward nor cost-effective.
While a trade surplus is generally beneficial, it is not the sole determining factor in economic performance. It is also important to note that neither of these is a trade deficit. The issue runs much deeper.
For instance, the experience of Germany, a country with a traditionally high trade surplus, demonstrates that even a significant surplus does not guarantee high rates of economic growth. Germany's trade surplus in 2024 was €241 billion. At the same time, the economy demonstrated almost zero growth rates, actually being in a state of technical recession, explains Evgeny Smirnov professor  of World Economy and International Economic Relations at the State University of Management.
The situation is entirely different in the United States. It is evident that this nation has been experiencing an ongoing trade deficit for a considerable period of time. The States' trade balance is in the red, with the value of goods and services sold falling short of the value of goods and services purchased. However, due to the dominant global position of the American dollar, the deficit in the United States is financed by growing national debt. The United States borrows money from foreign creditors or allows foreign investors to invest in American assets, explains Smirnov.
This economic model has historically developed in the United States, and the influx of capital into the country was driven by the trade deficit. Despite periods of significant trade deficit, the US economy has consistently demonstrated robust growth rates when benchmarked against other developed economies. This is largely attributable to the unwavering confidence of foreign investors in the US market. It has been suggested that an increase in dependence on imports may result in deindustrialisation, where the domestic industry of a country with a trade deficit will be unable to compete with imported goods. However, this is not the case, according to the analyst.
Therefore, in addition to the trade surplus/deficit, it is necessary to take into account the socio-economic model of a given country, its export orientation, its dependence on imports of individual goods, the nature of the debt burden on the economy, and the state of public finances (budget deficit or surplus). All of these factors combine to form the current state of the economy, and are not always interconnected.
The most evident outcome of the trade surplus for the population is the strengthening of the national currency, which is evident at present. Since the beginning of the year, the ruble has strengthened against the dollar by 20% and is confidently holding at the levels it has reached.
At the same time, the trade deficit has the potential to weaken the national currency, leading to higher import prices and inflation, as Smirnov noted.
When discussing the economic situation in Russia, it is important to note that the country, like many others that export raw materials and processed goods, has a surplus balance of payments and budget. This approach has both advantages and disadvantages.
In principle, a surplus is preferable to a deficit. Countries with a budget surplus tend to experience robust economic growth, a highly attractive labour market, and a wide range of lucrative investment opportunities. Such a country is usually quite self-sufficient. Conversely, a surplus may be indicative of an excessive tax burden and inadequate funding for the social sphere and innovation. As is the case with us, there are limitations on import purchases.
In any event, it should be noted that there is no universally applicable ideal trade balance for the economy. It is essential that we consolidate our achievements and address any shortcomings.
It is interesting to note that, in 2024, only 33 out of 91 countries worldwide were able to achieve a trade surplus. Collectively, these countries generated $2.3 trillion in revenue. A total of 58 economies worldwide recorded a trade deficit, resulting in a combined shortfall of $2.8 trillion. In the final analysis, it is more challenging to earn than to spend.