OREANDA-NEWS. On 24 February 2009 was announced, that according to preliminary data the goods exports amounted to USD 2.44bn in January 2009 (down 33.3%, y/y), while goods imports was USD 3.07bn (down 33.7%, y/y). This resulted in the goods trade deficit of USD 0.64bn (down 33.5%, y/y) - the lowest amount in the last two years.

Millennium Capital sees the significant reduction in exports as the main reason of the goods trade deficit. In particular, exports of chemical products dropped 2.1 times, y/y, while metallurgy and mechanical engineering reduced by 44.7%, y/y and 37.9%, y/y, respectively, in January 2009. At the same time, imports were decreasing at quite slower rates related to their lower flexibility to the price rise, since a significant stake of imported goods, such as energy resources, is inevitable and has few domestic substitutes. Millennium Capital expects that the goods trade deficit may rise in March, explained by the increase in the imported natural gas (expected at USD 300mn by the end of February) and no significant changes in exports. The goods trade deficit is expected to reduce starting in April 2009, related to insignificant increase in the demand for metallurgy and insignificant decrease in imports due to the imposition of 13%-imports duty extra charge.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.