Net сapital outflow from Russia increased to $31.3 billion in 2017
The net outflow of capital from Russia in 2017 grew to more than 1.5 times what it was in 2016, according to information from the Central Bank of Russia.
“The net capital export by the private sector, according to the estimates of the Bank of Russia, was $31.3 billion ($19.8 billion in 2016),” reported the regulator. The message from the Central Bank notes that the main source of net capital export was the banking sector’s operations to reduce external liabilities. “Capital outflows associated with operations of other sectors were generally mutually compensating,” added the Central Bank.
In December of last year, the Minister of Economic Development Maxim Oreshkin said that the outflow of capital from Russia in 2018, with higher oil prices, could exceed the $7 billion that was previously predicted by the Ministry of Economic Development.
For 11 months of 2017, the net capital outflow from Russia amounted to $28 billion. For the same period in 2016 it amounted to $8.2 billion. “Because of higher oil prices, a greater inflow of currency is coming, and the more is accumulated by the Ministry of Finance – the lower than the price of oil, the lower the outflow,” noted Oreshkin. He added that the macro forecast for 2018 will be clarified in February 2018.