Entrepreneurs in Russia take their capital abroad

Capital outflow from Russia by a record $84 billion in 2011 according to a preliminary Russian Central Bank (RCB) report. Analysts believe the trend will not change at least until the middle of 2012.

RCB’s Private Sector Net Capital Import/Outflow report indicates capital outflow increased from $19 billion in the 3rd quarter to $38 billion in the 4th quarter of 2011. Net Capital Outflow (NCO) by the end 2011 is estimated to be $84 billion which is two and a half times higher than in 2010, when the figure averaged out at $34 billion.Anton Saphonov, analyst from Investcafe says the outflow is caused by Russian businessman preferring to keep their active assets abroad, because of rouble currency risks and the election situation in the country.  “The trend will gain speed at least until the second quarter of 2012, because world economy risks continue”, adds the analyst.The 2011 NCO from the banking sector constituted $26 billion, while the outflow from other sectors reached $58 billion.