Second wave of Covid-19 and low oil prices curtail recovery in 2021
SENSITIVE RISK for enterprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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GDP |
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|
Population |
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|
Form of state | Federation | |
Head of government | Vladimir Vladimirovich PUTIN (President) | |
Next elections | 2021, legislative |
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- Abundant natural resources, in particular oil and gas
- More than 20 years of continued current account surpluses (including the crisis years 2009, 2015-2016 and 2020)
- Low public debt
- Comfortable foreign exchange reserves
![](/content/dam/onemarketing/ehndbx/eulerhermes_com/en_gl/erd/icon/minus.png)
- Far-reaching structural reforms still outstanding
- High vulnerability to global oil price shocks
- Prone to capital flight
- Exchange rate remains vulnerable to volatility and sudden depreciation
- Prolonged recession has adversely affected corporate profitability
- Poor rule of law and high level of perceived corruption
- Geopolitical risks: Conflict with Ukraine and serious dispute with the West over that conflict (including sanctions and counter-sanctions). Also involved in Syria crisis
Trade structure by destination/origin
(% of total)
Exports | Rank | Imports |
---|---|---|
China
9%
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1 |
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Germany
8%
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2 |
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Turkey
5%
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3 |
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Belarus
4%
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4 |
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United States
4%
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5 |
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Trade structure by product
(% of total)
Exports | Rank | Imports |
---|---|---|
Petroleum, petroleum products and related materials
48%
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1 |
10%
Road vehicles
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Iron and steel
7%
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2 |
7%
Other industrial machinery and parts
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Non-ferrous metals
5%
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3 |
6%
Articles of apparel & clothing accessories
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Coal, coke and briquettes
4%
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4 |
6%
Electrical machinery, apparatus and appliances, n.e.s.
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Fertilizers other than group 272
3%
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5 |
5%
Medicinal and pharmaceutical products
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Low
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Medium
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Sensitive
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High
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Payments
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Court proceedings
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Insolvency proceedings
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Payments
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Court proceedings
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Insolvency proceedings
Courts can be fairly efficient when a debt is certain and undisputed, but legal proceedings may otherwise be complex (no default judgments, no fast track proceedings above EUR 4,000 even if the debt is certain and undisputed) and cannot be avoided through Alternative Dispute Resolution methods(which is not relied upon) or through foreign courts (since Russian courts apply extremely strict jurisdictional exclusivity rules).
Insolvency proceedings ought to be avoided. A debt renegotiation mechanism isindeed available, although it is unused in practice. Liquidation is therefore the default procedure, but unsecured creditors would have very limited chances of recovering their debt.
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