Economic Development Ministry expects capital flight rate to increase in 2011

Author: Agatha Idrisova Section: Major Events of the Month

Issue: July 2011, Vol. 6, No. 6

Tags: Nabiullina

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Capital Flight

Speaking at a press briefing in June, Deputy Economic Minister Andrei Klepach said he would exclude the possibility of capital flight from Russia rising in 2011. “At this moment, the net result is zero, but it can be minus, because the scale of the capital outflow is higher than expected.”

He, however, hopes the negative trends could be mitigated via ruble appreciation, which favors capital inflow, and the ability of the non-financial sector of the economy to secure loans and attract investments. “We expect more significant inflow of capital in H2’2011 as investors’ assessment of our economy growth potential is very positive.”