<tit>RUSSIA IS READY TO FULLY PAY OFF DEBTS TO PARIS CLUB
Russia plans to pay approximately $12 billion to the Paris Club of creditors ahead of schedule in approximately six months. This is actually the entire sum of the debt of the former USSR to the Paris Club, which Russia can pay off ahead of schedule. If this proposal is supported at the meeting of finance ministers of G8 countries Russia will be able to save money on payment of interest once again.
On February 7, a source in the Finance Ministry reported that Russia was preparing proposals regarding early return of $11-12 billion in debts to the Paris Club. The source said, "This is practically the entire debt of the former USSR to the Paris Club that Russia can pay off ahead of schedule. It is impossible to pay off the debt ahead of schedule only to Germany because Germany has issued its bonds worth approximately EUR6 billion and combined all payments on the bonds with the schedule of payments of Russia."
According to the Finance Ministry, obtaining approval for early return of the foreign debt of Russia may take approximately six months. The source in the ministry says that this money may be used as the basis for increase of contributions of the Paris Club member states in refilling capital of the World Bank in the framework of the initiative for writing off of debts of the poorest countries.
In May of 2005, Russia paid $15 billion to the Paris Club ahead of schedule and at par value from the stabilization fund reducing the overall debt to the club to $28 billion. According to the Finance Ministry, early repayment of debts enabled the Russian budget to save $1.2 billion in interest payments. Such big payment was facilitated by the permanently growing stabilization fund being the main source for early return of the foreign debt.
Practically immediately after Russia transferred the biggest sum of early repayment in its history, Finance Minister Alexei Kudrin announced that in 2006, Russia might propose early return of another part of the debt. Thus, if Russia pays $12 billion more ahead of schedule it will have chances to fully pay off the debt to the Paris Club by 2008. There are grounds for this: on January 1, 2006, the volume of the stabilization fund reached 1.237 trillion roubles.
Thus, Kudrin only needs to persuade his colleagues from G8 countries to accept the proposal of Russia about the early return of the debt.
It will not be easy to do this. First of all, Russia will have to reach an agreement with Germany, which remains the largest creditor of Russia in the framework of the Paris Club (about $18 billion). According to some German mass media, the incumbent government of Germany is not quite happy about the idea of Russia to pay off its creditors as soon as possible because in this case Germany will lose a part of revenue from payment of interest on the debt. The incumbent government of Germany also does not like the idea of solving the problems of budget deficit of Germany on account of early repayment of debts by the Russian party. Hence, it is possible that Kudrin's proposal, if it is announced at the meeting of finance ministers of G8 countries, may be blocked by German Finance Minister Peer Steinbrueck.
<ref>Biznes, February 08, 2006
<tit>POSITIVE BALANCE OF RUSSIA'S FOREIGN TRADE GREW TO $142.8 BILLION
In 2005, positive balance of Russia's foreign trade grew to $142.8 billion from $106.1 billion in 2004, reported the Federal Customs Service. The positive balance of trade with non-CIS countries amounted to $129.2 billion (in 2004, it amounted to $94.3 billion) and the balance of trade with CIS countries amounted to $13.7 billion (in 2004, it amounted to $11.8 billion). The turnover of Russia's foreign trade amounted to $339.8 billion or was 32.1% more than in 2004.
In 2005, Russia's export amounted to $241.3 billion or was 32.9% more than in 2004. In 2005, turnover of Russia's trade with non-CIS countries amounted to $288.3 billion or was 37.3% more than in 2004. Export to non-CIS countries amounted to $208.7 billion (+37.2%) and import amounted to $79.6 billion (+37.5%).
The main positions in the export to non-CIS countries practically did not change in comparison to 2004, and included the most important energy resources (oil, gas petroleum products, coal), ferrous and nonferrous metals. In 2005, the share of fuel and energy products amounted to 66.8% of the entire export to these countries (in 2004, it amounted to 59.9%). The value of products in this group grew 153.1%, which was conditioned by high international prices of mineral raw materials and fuel.
Physical volumes of crude oil export to non-CIS countries decreased insignificantly (1.4%) in comparison to 2004, and amounted to 214.4 million tons in 2005. Natural gas export grew 9.9% in comparison to 2004, export of petroleum products grew 18.7% (export of gasoline grew 49%, diesel fuel 12.9% and fuel oil 18.8%).
In 2005, turnover of Russia's trade with CIS countries amounted to $51.5 billion or was 9.2% more than in 2004. Export to CIS countries amounted to $32.6 billion (+10.6%) and import amounted to $18.9 billion (+6.8%).
In the structure of export to CIS countries in 2005, the share of fuel and energy products amounted to 40.5% (in 2004, it amounted to 45.1%), machinery and equipment amounted to 21.1% (210%) and metals and metallic products amounted to 11.9% (9.8%).
In 2005, Russia's import amounted to $98.5 billion or was 30.4% more than in 2004. Import from non-CIS countries amounted to $79.6 billion (+37.5%) and import from CIS countries amounted to $18.9 billion (+6.8%). In the overall import, the share of non-CIS countries amounted to 80.8%.
From non-CIS countries Russia imported food products and agricultural products (the average contracted price grew 114.8%), chemicals (124.6%), machinery, equipment and transportation vehicles (112.9%). In import from CIS countries, the physical volume of tea import grew 35.7%, citrus 200%, pipe 7.3% and cars 53.4%. Import of ferrous metals grew 27.7% (in value).
The European Union remained the largest economic partner of Russia. In 2005, it accounted for 52.1% of Russia's turnover of trade. In 2005, CIS countries accounted for 15.2% of Russia's turnover (18.3% in 2004), member states of Eurasian Economic Community accounted for 7.8% (10.3%) and member states of Asian Pacific Economic Cooperation accounted for 16.2% (16.8%).
In 2005, the main trading partners of Russia among non-CIS countries were Germany with turnover in trade of $33 billion (+38.2% in comparison to 2004), Netherlands with $26.5 billion (+59.4%), Italy with $23.5 billion (+53.5%), China with $20.3 billion (+36.7%), Turkey with $12.6 billion (+45.2%), Poland with $11.4 billion (+41.9%), Switzerland with $11.3 billion (+35.9%), UK with $11 billion (43.3%), US with $10.9 billion (+10.8%) and Finland with $10.7 billion (+31.4%).
<ref>polit.ru, February 08, 2006
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