Outlines of structural transformations in international trade
Th e article overviews structural shift s in international trade under globalization. Special
attention is paid to trade in hitech and intellectual goods and services, changing positions of
developed and developing countries in this trade, identifi cation of leading traders in innovation
segments of the world market. New statistical data enabled carrying out a detailed analysis of
the services trade by mode of supply and concluding that inclusion of the supplied services in total volumes via establishing commercial presence abroad (mode 3 in WTO terminology) causes
qualitative change in the parameters of international exchange in services and selected countries’
participation in global trade. Th e ongoing transformations in developing and emerging markets
are assessed with growing diversifi cation of their development trajectories in terms of their impact
on the international economics and global competition.
Foreign trade of Russia: the nature of rises and falls
Th e article analyses the state of the domestic economic over the past twenty years and the in-
fl uence of the changes in it on the foreign trade. It reveals the main factors, which had either posi-
tive or negative eff ects on both exports and imports in the context of the encountered economic
crises and processes of overcoming them. Th e article presents data on the dynamics of the main
macroeconomic parameters and indices of the foreign trade. It states that changes in the global
prices and devaluation of the rouble were not always the cause of the corresponding growth or
decrease in the real volumes of exports and imports. Besides, the increase in exports was mostly
the result of the output growth while and the widening imports – of higher domestic demand.
State support of exporters
The authors consider objective factors contributing to the development of export support
systems in different countries, in particular, the strengthening of competition in foreign markets
and the use of a variety of nontariff support methods for national producers by the importing
countries, and the introduction of new import duties on steel and aluminum in the USA in March
this year. The article examines the measures to promote the production activities of national
companies in the context of increasing foreign competition, and to expand supplies to foreign
markets, emphasizes the strengthening of support for domestic exporters in Russia.
International trade in fuel and energy products: current state and prospects
Russia’s positions in international markets for fuel and energy products have strengthened
over the past two years. Given Russia’s initiative and extensive eff orts to settle market regulation
12 OPEC members and 11 non-associated exporters reached an agreement to limit oil production
by about 1,9% in December 2016. Since the countries concerned have fulfi lled their limitations it
has been prolonged till the end of 2018. Th e agreement has not secured a surge in prices, but has
granted their consolidation at the (pre-drop) level of 2015 - over $52. Th e beginning of October
2017 has brought two important events - «Th e Moscow energy week» and the visit of the King of
Saudi Arabia to Moscow. Тhe understanding between two greatest oil producers (26 % of global
output) is very valuable. By mid-January 2018 the oil price has come сlоse to the level of 70 dollars.
Th e article also contains statistics on energy balances in respect of oil, gas, coal, nuclear energy,
hydroelectricity, renewable energy and net exports and net imports.
This study analyzes the interaction of intensity of bilateral trade in goods and volatility of pair
wise exchange rates between Russia and its major trade partners, as the bulk of existing economic
literature considers only the oneside causal link from exchange rate volatility to trade in goods.
Th e paper fi nds that, on the one hand, exchange rate volatility has no statistically signifi cant im
pact on the intensity of trade relations with Russia’s major trading partners, yet, on the other hand,
a 1% increase in average trade intensity with a country results in a 0.3% drop in volatility of real
eff ective exchange rate. Moreover, the authors have empirically determined the most important
channels infl uencing real exchange rate volatility: the credit channel (Intercountry shortterm
debt fl ows), the macrotrade channel (intensity of trade between two countries), and the micro
structural channel (a measure of variance standard deviation of export transaction volume).
Foreign trade challenges for Russia’s agricultural sector
In the article, the issues associated with the development of agriculture under sanctions and
import substitution are considered. Th e author reviews organizational and technological, fi nan-
cial and economic, and social and economic aspects of domestic and foreign economic policies,
including the issues of creating a new system (growth model) of agriculture competitiveness
management, its structural modernization on the basis of prospective competitive advantages; a
set of eff ective mechanisms of state support; the creation of a competitive environment. Diverse
methods and techniques to increase agricultural industries’ capacities for the production of vari-
ous types of agricultural products with the measures that might signifi cantly increase exports of
domestic goods on foreign markets are proposed.
Regulation of the global fi sh trade
The issue of the depletion of fi sh stocks in the world ocean has become increasingly relevant in
recent years. Despite the vital importance of fi sh in global trade and fi sh as a source of livelihood
for many nations, the problem of overfi shing remains unsolved.
Th e article examines the existing methods of regulating the fi sh market (tariff , nontariff and
other measures) and evaluates their effi ciency. Special attention is given to fi sheries subsidies
that are considered as a factor hampering the sustainable development of fi sheries. An extensive
review of the global action to tackle the problem is also presented in the article.
Risk management in transfer pricing
Th e article deals with the implementation processes of Base Erosion and Profi t Shift ing Plan
(BEPS Plan) in taxation systems of diff erent countries. It is outlined that the “substance over form”
conception allowing counteract transaction risk manipulation is stated in the new OECD Manual
version. New rules of price determination in controlled transactions based on risk management are
represented. Statistic data on foreign direct investment in the Russian economy and consequences
of affi liation of Russia with the Agreement of automatic exchange of fi nancial and tax information
Effective participation of Russia in the WTO
Th e article deals with the opportunities and ways to improve Russia’s membership in the
WTO. Th e author analyzes the likely benefi ts of the membership (decreasing trade discrimination,
extension of more favorable regime in foreign trade, access to the WTO dispute settlement
mechanism and etc.) as well as substantial benefi ts, which are contingent upon economic
reforms, perfection of the structural and geographic distribution of trade, the exercise of all WTO
participation rights. Th e author underlines the essential preconditions for the improvement,
in particular, integration of science into developing public-private partnerships, elimination of
imbalances - between Russia’s large number of scientists and its low share in hi-tech exports,
substantial increase in government support for national exporters of manufactured goods. Th e
author suggests that the membership improvement experience of some predecessors of Russia in
the WTO, including China and India, might be considered and adopted.
Economic problems of Saudi Arabia
The article examines the impact of the fall in global oil prices on the economy of Saudi Arabia,
on the state of the national budgets (20015-20018) and on the fi scal situation as a whole. In the
face of a decline in revenues from oil exports, the kingdom’s government was forced to reduce
public spending, in particular, investment allocations. Special focus is given to the analysis of the
activities of the ruling Saudi elite to increase the so-called non-oil revenues to the treasury of the
At the same time the decline in oil revenues in recent years has clearly demonstrated the
objective need to structural transformations in order to reduce cardinally the dependence of
the Saudi Arabian economy on oil. Th erefore, the author pays much attention in the article to
the consideration of the new program of economic diversifi cation of the country – Vision 2030,
adopted in April 2016. Implementation of this plan opens prospects to further expansion of trade
and economic ties and investment cooperation between Saudi Arabia and Russia, which has
remarkably intensifi ed in recent years.
Keywords: Russia, Saudi Arabia, drop in oil prices, fi nancial and economic problems, state
budget, increase of non-oil revenues, Vision 2030, economic cooperation.
3 - 2018