Alexander Firanchuk, Senior Researcher of the International Trade Department, commented current situation in the raw materials export from Russia to radio station Govorit Moskva. He believes that situation remain stable and the country is successfully overcoming the consequences of the sanctions pressure.
The expert noted that despite the initial goal of the sanctions to restrict Russia’s foreign trade, Russia, being a major supplier of raw materials, has found effective ways to support exports. Alexander Firanchuk emphasized that flexibility in pricing, in particular provision of discounts, made it possible to quickly reorient trade flows to new markets.
"Initially, the sanctions pressure was aimed at restricting foreign trade. The idea was to reduce Russian exports and limit imports. However, Russia has a certain advantage. Russia is an exporter of raw materials. How trade in raw materials is organized in the world? If you suggest a 5% discount, you will most likely be able to sell depending on sanctions. If you suggest a 10% discount, they will buy from you very quickly. And if it is a 15% discount, there will be a queue. This is what happened. Russia quickly transferred its trade flows, primarily oil and metals, to the Chinese and Indian markets. Now the situation is stable. And if fifteen percent, there will be a queue. This is what happened. Russia quickly transferred its trade flows, primarily oil and metals, to the Chinese and Indian markets. At present the situation is stable. There is a trade surplus again. It is true that imports have become a little more expensive and imports of some goods are very limited, but they can be transported by some roundabout routes. It is a little more expensive, but the surplus remains. Formally speaking, we do have money," explained Alexander Firanchuk.