Russia’s Capital Outflow More Than Doubled in 2018 to $68 Bln

[Rogue Valley]

Russia’s Capital Outflow More Than Doubled in 2018 to $68 Bln

1/18/19
Russia saw a net capital outflow of $67.5 billion in the private sector in 2018, or 2.6 times more than the previous year, according to reports citing Russian Central Bank data. Capital outflow increased in Russia in recent months on the back of tightening Western sanctions. Initial Central Bank estimates placed the net outflow of capital from Russia at $31.3 billion in 2017, 1.6 times more than the previous year. Russia’s Central Bank now estimates net capital outflow in 2017 totaled $25.2 billion and almost tripled in 2018 to $67.5 billion, Interfax reported Thursday. Around $36.5 billion worth of capital left Russia between October and December 2018, the news agency cited bank data as saying. Last year’s net capital outflow posted a four-year high, according to ING economist Dmitry Dolgin. The Dutch financial services company said the $67.5 billion was “second only to the panic-driven $152 billion seen in 2014.”

Investors (and Russians) are finding more stable places for their money. $36.5 billion left Russia after the Kerch Strait kidnapping of 24 Ukrainian sailors. They are still in a Moscow prison.