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Finance and Credit
 

Analyzing trade and financial relations in Russia today

Vol. 26, Iss. 8, AUGUST 2020

Received: 28 April 2020

Received in revised form: 12 May 2020

Accepted: 26 May 2020

Available online: 28 August 2020

Subject Heading: Financial system

JEL Classification: E44, E69, F10, G10, G32

Pages: 1703–1730

https://doi.org/10.24891/fc.26.8.1703

Smirnov V.V. I.N. Ulianov Chuvash State University (ChuvSU), Cheboksary, Chuvash Republic, Russian Federation
v2v3s4@mail.ru

https://orcid.org/0000-0002-6198-3157

Subject. The article discusses trading and financial relations of today’s Russia.
Objectives. The article is to determine requirements for trading and financial relations to progress in Russia today and evaluate how they influence the economic growth.
Methods. The study is based on the systems approach and the statistical analysis.
Results. Having analyzed trading and financial relations, I found what can give an impetus to the contemporary economy in Russia, i.e. oil prices, related risks. The article demonstrates that government bonds (federal loan bonds) cushion and set off an increase in the foreign exchange rate. The dynamics of the oil price and the issue of federal loan bonds shape the environment where trading and financial relations evolve in Russia today, i.e. export prices for natural resources outgrowing prices for some commodities; a stalling growth in the acquisition of financial assets, debt instruments and a growth in liabilities, equity and shares of mutual funds; a growing pace of long positions of forward, futures, options contracts due to a slow down in short positions; rising pace of official reserve assets. As long as the international trade slows down and the global recession begins, the existing trading and financial relations resulted in a palpable economic growth.
Conclusions and Relevance. Opportunities for the development of trade and financial relations in contemporary Russia are conditioned by the changing world order, which determines the dynamics of economic growth. The findings expand the knowledge and create new competencies of governmental authorities when making managerial decisions to ensure the effective design of the Russian economy in terms of the current trading and financial policy.

Keywords: oil, federal loan bonds, consumption, reserve assets, demand, trade and financial relations

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