Russia’s foreign trade turnover in the first seven months of 2006 stood at $237.1 billion, up 30.6 percent. Trade with the CIS countries increased 23.2 percent to $34.3 billion, while trade with other countries rose 32 percent to $202.8 billion.

Exports from Russia totaled $168.6 billion from January to July 2006, 29.7 percent more than in the same period of last year. Exports to the former Soviet republics increased 31.9 percent to $22.9 billion, and exports to other countries were up 29.3 percent to $145.7 billion.

Imports amounted to $68.5 billion, up 33.1 percent on the year. Imports from the CIS nations rose 8.7 percent to $11.4 billion, and imports from other foreign countries were $57.1 billion, an increase of 39.4 percent.

Trade with the European Union accounted for 54.1 percent of Russia’s trade turnover, against 52.4 percent in the same period of 2005. Trade with the CIS countries made up 14.5 percent, down from 15.3 percent in the corresponding period of last year. Trade with the Eurasian Economic Community was up 7.7 percent at 7.6 percent, and trade with the APEC countries increased 16 percent to 16.3 percent.

Russia’s key trading partners in the first seven months of this year were Germany (trade turnover at $23.6 billion, up 30.2 percent), the Netherlands ($21.2 billion, up 44.2 percent), Italy ($17.3 billion, up 40.9 percent), China ($14 billion, up 40.2 percent), Turkey ($9 billion, up 38 percent), Poland ($8.4 billion, up 39.3 percent), the United States ($8.2 billion, up 31.8 percent), the United Kingdom ($7.7 billion, up 29.9 percent), Switzerland ($7.4 billion, up 28.8 percent), and Finland ($7.3 billion, up 21.7 percent).

On 4 September Standard & Poor’s Ratings Service raised its long-term foreign currency sovereign credit rating on the Russian Federation to ‘BBB+’ from ‘BBB’ and its long-term local currency sovereign credit rating to ‘A-’ from ‘BBB+’. At the same time, Standard & Poor’s affirmed its ‘A-2′ short-term foreign and local currency ratings and its ‘ruAAA’ Russia national scale rating on the sovereign. The outlook is stable. In addition, Standard & Poor’s simultaneously raised the transfer and convertibility assessment on Russia to ‘A-’ from ‘BBB+’.

“The upgrade is based on ongoing improvements in Russia’s foreign exchange reserves and the strengthening of the general government balance sheet,” Standard & Poor’s credit analyst said. The foreign exchange reserves held by the Central Bank, including the government’s Stabilization Fund, can be expected to reach $285 billion by the end of 2006 - a fourfold increase from 2003 - and will cover almost nine months of current account payments and surpass short-term debt more than 4.5 times. At the same time, astute fiscal management has improved the government’s balance sheet: General government debt will fall below 10 percent of GDP next year to less than one third of ‘BBB’-median ratio. The government is currently poised to become a net creditor by the end of 2006, the ratings agency said.

According to the Russian Federal State Statistics Service (Rosstat), Russia topped other Group of 8 countries in its gross domestic product (GDP) growth rate in the first quarter of 2005. Russia’s GDP gained 5.5 percent in Q1 compared to the same period in 2005. The USA ranked second with a growth rate of 3.7 percent, followed by Japan with 3.4 percent, Canada with 3.3 percent, the UK with 2.3 percent, German with 1.7 percent, Italy with 1.5 percent and France, also boasting 1.5 percent.