Guest post: the Navalny case and Russian capital flows – what’s happening | beyondbrics

Guest post: the Navalny case and Russian capital flows – what’s happening | beyondbrics:

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By Timothy Ash of Standard Bank

Russia’s finance ministry has claimed that net private capital outflows may stop in 2014. It is interesting that the ministry should be pushing this idea just as a guilty verdict has been handed down to Alexei Navalny.

I would hazard a guess that negative global headlines on this kind of case will likely subdue foreign inflows and encourage Russians to stash more of their money overseas.

The net private sector capital flow data published by the Central Bank of Russia is certainly interesting. It is generally taken to be a proxy for capital flight, and it is true that the figures have moderated in the second quarter."

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