Aggression price: Capital outflow from Russia exceeds $110bn

Capital flows out of Russia amid war.

Net capital outflow from Russia has exceeded $110 billion since the beginning of the year. The information is contained in the bulletin published by the Development Centre of the National Research University Higher School of Economics (HSE), Prime business news agency reports.

HSE experts think net capital outflow from the private sector exceeded $25 billion in October. “Western sanctions, restricted access to the world capital market, the peak in external debt service payments, economic stagnation, a spiral of devaluation and inflation and other negative expectations will boost capital outflow from the country. Banks continue to reduce their foreign currency assets to be able to cope with external debt payments,” the document says. The institute forecasts a net capital outflow of $120 billion by the end of the year.

Russia's central bank expects capital outflow from Russia in the nearest three years: $90 billion in 2014 and $35 billion next year, according to the draft guidelines for the state single monetary policy in 2015-2017.

Vice-President of the European Parliament Ryszard Czarnecki earlier forecast that capital outflow from Russia would reach 100-120 billion dollars by the end of the year.