The article looks at how changes in exchange rates affect Russia's imports and non-fuel exports. The study found that a 10% increase or decrease in the value of Russia's currency leads to a 1% change in the country's non-fuel trade balance. This means that when the currency gets stronger, Russia's non-fuel trade balance worsens, and when it gets weaker, the trade balance improves. The study also showed that Russia's trade balance adjusts quickly to exchange rate changes, usually within one quarter. Additionally, the prices of Russia's imports and non-fuel exports compared to other countries suggest that Russia lost its price competitiveness advantage in 2004.