Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

Acceleration Of Capital Outflow
September 30, 2014 06:04


Foreign policy risks and the situation around the “Sistema” JSFC may trigger the acceleration of capital outflow from Russia, the Ministry of Economic Development admitted. According to the results of 2014, it may exceed the official target of $ 100 billion by $ 20 billion, as the Deputy Minister Aleksei Vedev believes.

The Ministry of Economic Development revised its forecast of capital outflow from Russia in this year about a month ago, increasing it from $ 90 billion to $ 100 billion. But foreign and internal policy risks can extend the range of the outflow up to $ 90-120 billion, the Deputy of the Economic Development Minister Aleksei Vedev said yesterday.

The Central Bank estimates the capital outflow of this year at $ 90 billion, hoping that its rate will significantly decrease in the second half of the year. The net capital outflow in the second half of the year may amount to about $ 20 billion, according to the estimates of the Central Bank. “The part of the outflow, which was not caused by fundamental factors and has been linked with a splash of uncertainty in the economy and in the financial markets, occurred mainly in March of 2014.

The rate of outflow of private capital have sharply fallen in the second quarter, and a small net inflow of capital was recorded in June 2014, according to the estimates” - the report of the Bank of Russia on monetary policy published on September 16 says. The estimate of Vedev was made “taking into account the situation around “Sistema” JSFC and reduction of its capitalization” - the official clarified.

The arrest of the chairman of the board of directors Vladimir Evtushenkov will not have much impact on the actual outflow of capital, the experts disagree. “The situation around “Sistema” has a great psychological impact on the market, but the impact will not be very huge in terms of the volume of capital outflows, because many investors have left the market in advance” - the chief economist of Alfa Bank Natalia Orlova says.

The economist of “VTB Capital” Vladimir Kolychev also does not consider the arrest of Evtushenkov as a factor in capital outflow. The economists believe that the main reason for the outflow of capital in the second quarter of 2014 will be the actual closing of the market of foreign borrowings for companies and banks.

Author: Anna Dorozhkina

Tags: Russian economy Sistema    

Next Previous

You might also find interesting:

Gazprom Might Change Currency For International Transactions Economic Benefits from Holding the World Cup 2018 Media Buzz: Will US Sanctions Over Crimea Work? Rosneft Will Enter Helivert Joint Venture Buzz Barometer: Sanctions Send Ripples Across World

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Festivals in Moscow  Startups  Rusian Culture  Lake Ladoga  Ornaments  Russian fashion designers  Kaliningrad  Russian Arts and Crafts  Perm Museums  ITMO University  Tula Region  travel to Russia  Global Village Festival  Kimono  Russian opposition  Book Tickets for Concerts  society  Mercedes-Benz Fashion Week Russia  Russian business  Red Square  Charity  Sochi  Russian regions  Chris Rea  Petersburg events  St. Petersburg  poll  Heroism   Exhibitions in Moscow  Bike Rental Stations  Suzdal  Alexander Gorodnitsky  Andrey Platonov  Russian tourism  Moscow  Vasily Zhukovsky  Russian Music Instruments  Russian Cinema  Krasnodar region  Sharp  rare coins  Kuzminki  Central Bank  Vyacheslav Malafeev  Paleontology  Russian army  Buddhism  New Wave Contest  buy Russian designers  Roman Abramovich 

Travel Blogs
Top Traveling Sites