Russia’s current account deficit decreased by 93% from a record $76.7 billion in April-June 2023 to the lowest level since the third quarter of 2020.

Restricting energy exports, Western sanctions against the Kremlin for its involvement in the Ukraine conflict have impacted the country’s economy.

In July, the ruble reached a 15-month low of approximately 94.48 per dollar, corresponding to a decline in trade activity.

The decrease in the external trade surplus in goods during January-June 2023 was attributable to a decline in export volumes and a deterioration in the price situation for fundamental export commodities from Russia.

The primary source of revenue for Moscow is the sale of oil and gas, but price controls and export bans imposed after the conflict in Ukraine have devastated its commodities economy.

In June, oil and gas tax revenues decreased by 36% to 570,7 billion rubles, while crude and hydrocarbon product revenues decreased by 31% to 425,7 billion rubles.

Scholars argue that in order to conquer Ukraine, Vladimir Putin is cannibalizing the Russian economy.