INVESTMENT CLIMATE

Negative investment speeding up in Russia

Last month, according to Russia’s Central Bank, private capital outflow reached $6 bln having grown by over 50% between January and July.

Vladimir Trefilov / RIAN
Vladimir Trefilov / RIAN

Capital flight is observed against export revenue and economic profitability decline. Yet surprisingly, the account surplus in July amounted to $2.2 bln due to a very low services import and a strong oil export.

As experts note, the capital drain persists, especially in the current crisis time.

The movement of money (big money first of all) is following the expectations of the money owners. Given the Westward flow of the money, investors do not expect any explosive growth of Russia’s economy, to say the least,” economist Sergei Khestanov of the Russian Presidential Academy of National Economy and Public Administration, believes.

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