We haven't talked about Russia and the economy or stocks for a long time. I know there were a few people who owned stocks. Do you still have them? It's just that I came across an interesting article about how their economy is slowly going down the tubes, so if any brave souls still own them.

Here's a little summary of the state of Russia's economy 👇

1. Ruble in free fall

The country's currency plunged to a 15-month low of 94.48 against the dollar in July, triggered by capital flight, falling tax revenues and declining central bank reserves.

2. Energy export revenues

Moscow derives much of its revenue from the sale of oil and gas products, but Western sanctions have disrupted this revenue stream.

In June, the Russian Finance Ministry said that tax revenues from oil and gas fell 36% from the previous year to about 571 billion rubles and that profits from oil and oil products fell 31% to 426 billion rubles. (Sure, sanctions don't work, wink 😉 ).

3. Sharply declining exports

Another sign that the Russian economy is floundering is the dramatic drop in its current account. Moscow's central bank reported a 93% year-on-year drop in the current account surplus for the second quarter. It fell from a record $76.7 billion to $5.4 billion.

- The fall in the current account surplus means that the gap between foreign trade earnings (exports) and expenditure on importing goods and services from abroad has narrowed.

4. The decline in car sales - another important part of the economy

The Russian car industry is one part of the economy that is under pressure. Phil Rosen reported that car sales in Moscow have fallen by almost 75 percent since the outbreak of war in Ukraine.