Foreign capital flees from Russia

Investors are pulling capital from Russia-oriented funds

For the period from 1 to 6.12-oriented assets of the Russian Federation funds emptied 91.4 million dollars. that is 7.3 times more than the previous week. The outflow of money caused by withdrawal of foreign investors. The information was published on the site “Rosbalt” with reference to an overview of EPFR (Emerging Portfolio Fund Research – organization for tracking the allocation of funds between investment funds).

As previously reported, the Central Bank estimated the total outflow of funds in the amount of 23.8 billion dollars. (this refers to the period from January to October this year). For comparison, over the same time period in 2016, the outflow of capital amounted to 8.6 billion, which is 2.8 times less than now.

On assurances of a regulator, the bulk of the removal of capital falls on financial institutions that are associated with high commitment net of repayments on the foreign market. With regard to cross-border transactions in this sector, according to representatives of the Central Bank, the situation was more than balanced.

Dmitry Polevoy, economist at ING Bank in Russia and CIS countries, earlier announced that by the end of the 3rd quarter of 2017, the largest removal of capital had on the shadow transaction. In his words, 4.2 billion dollars. was recorded by the Central Bank under “net errors and omissions”, which is a Testament to the outflow of funds from the financial market of the country in the implementation of the transaction, the nature of which is still not known. The sum of all the “unknown” deals in a single quarter amounted to 4.6 billion dollars. – exactly the same as it was for 2016-the year as a whole. Here, according to Field, we need to add half of the quarterly outflow assigned to “dubious transactions”. In the period from January to the end of September, it was 1.1 billion dollars. this is two times more than in 12 months last year.

Note that earlier projected the capital outflow is expected to reach 20 billion dollars. in 2017 and 25 billion dollars. in 2018 year. Such data was published by the Ministry of economic development.

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