Support The Moscow Times!

Outflow Could Drop Investments 1.3%, Minister Says

An outflow of capital from the Russian economy in 2014 of around $100 billion would put the country's annual Gross Domestic Product growth at 0.6 percent and investments would drop by 1.3 percent, Economic Development Minister Alexei Ulyukayev said on Thursday.

"If we take into consideration that in the first quarter of this year, we had around $60 billion of capital outflow..., even if we consider this a single wave, but further we'll see a more or less standard medium volume of outflow over the last few years, then we will come out on the level of around $100 billion for the year," Ulyukayev said at a forum at Moscow's stock market, adding: "In this type of a scenario, the estimate of economic growth will drop to 0.6 percent."

"This type of scenario in investments will become negative, approximately at the level of minus 1.3 percent," the minister said.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.