Goldman Puts 2014 Capital Flight at $130Bln | The Moscow Times

Goldman Puts 2014 Capital Flight at $130Bln | The Moscow Times:



"LONDON — Capital flight from Russia has risen sharply since the start of this year to $45 billion and $50 billion, Goldman said, predicting full-year outflows could be as much as $130 billion, or double 2013 levels.




Goldman said its calculations show capital outflows have jumped 60 percent from year-ago levels as the economy slows and the threat of Western sanctions bites. It also slashed its forecast for Russian economic growth this year to 1 percent.



Western powers are considering imposing sanctions on Moscow in response to its military intervention in neighboring Ukraine, especially if the Crimea region votes this weekend in a referendum to secede from Ukraine and join Russia.



"The Achilles heel of the Russian economy remains the flow abroad of Russian capital following any shock. We would also think that any sanctions or even the threat of sanctions will be ultimately targeted at these flows," Goldman analysts Clemens Grafe and Andrew Matheny said in a note late last week."



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