Support The Moscow Times!

Russia Sees Net Capital Outflow Drop to $20 Billion in Q2

The Central Bank expects this year's capital outflow to be around $90 billion.

Net capital outflow from Russia fell in the second quarter to $20 billion, according to estimated balance of payments data published by the Central Bank on Thursday, pointing to a stabilization in financial conditions.

The outflow figure was only slightly lower than the $21.9 billion outflow recorded in the same period a year earlier but 38 percent less than in the previous quarter, when the outflow was $32.5 billion.

Russia saw record outflows of $154.1 billion in 2014 as Western sanctions over the Ukraine conflict exacerbated a slump in investment and a collapse in oil prices hurt Russia's export earnings.

While EU sanctions on Russia were extended by 6 months in June, Russia has seen no additional Western sanctions and has benefitted from a slight strengthening of the price of oil.

The Central Bank expects this year's capital outflow to be around $90 billion. Capital outflow in 2013 stood at $61 billion.

Russia's current account surplus amounted to $19.2 billion in the second quarter, the Central Bank estimates showed, also lower than the $28.9 billion recorded in the first quarter.

Russia's overall economic position is still rocky, however, with many analysts expecting the economy to shrink by 3 percent this year as low oil prices and Western sanctions squeeze investment. Industrial output fell sharply in May, contracting 5.5 percent year-on-year according to data from state statistics service Rosstat.

This report includes material from The Moscow Times.

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.