Russian Capital Outflow Increased By 30 Percent Last Week Amid Ruble Crisis

The total outflow of means from funds invested in Russian assets increased to $91.8 million during the week beginning January 14th. According to Interfax, based on data provided by the Emerging Portfolio Fund Research (EPFR) analysts, last week investors withdrew $70 million from Russian investments—an outflow of means increased by 30%.

Sberbank CIB estimates the total net cash outflow from funds investing only in shares of the Russian Federation also increased to $42.1 million from January 14th to 20th. The outflow the week before then was pegged at $12.9 million. The company report noted that the reaction of investors investing in Russian assets was not even as critical as expected, even taking into account the sharp drop in oil prices—9.7% from the beginning of the year—and the RTS index.

In mid-2015, investors also actively withdrew their money from investments in Russia. From August 20th to 26th 2015, the volume of withdrawals exceeded $433 million, which was the worst outflow since the beginning of 2015.

For the week of January 14th this year, the outflow of means of funds investing in emerging markets was approximately $2.2 billion. For 2015 the outflow of capital from emerging markets was seven times higher than the figures in 2014: a striking $735 billion versus $111 billion, respectively. This was the highest outflow in the past 15 years, according to a study of the Washington Institute of International Finance (IIF).

IIF analysts expect that in 2016 the outflow of capital from emerging markets will slow down but remain significant at $448 billion.

  Russia, Economy of Russia, investments

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