Capital Flight From Russia in 2015 May Be $90-$100 Billion

Capital Flight From Russia in 2015 May Be $90-$100 Billion © REUTERS/ Ruben Sprich

12:30 23.01.2015(updated 15:18 23.01.2015)

DAVOS, January 23 (Sputnik) – Capital flight from Russia in 2015 may reach $90-$100 billion, Russian former Finance Minister Alexei Kudrin said Friday.

“We will return to earlier loans taken and this is a large amount for the year, that is $120 billion, part of which, obviously, will be refinanced, but the pressure on the currency exchange rate is great, and this year, for example, capital flight will also be around $90-$100 billion. This is a huge strike against the Russian economy each year,” Kudrin said during a session at the Davos Economic Forum.

Net capital outflows from Russia increased by 2.5 times in 2014 to $151.5 billion, the country’s Central Bank reported earlier this week. The institution expects capital flight to total $118 billion in 2015.

The Russian budget relies heavily on energy exports and a slump in oil prices pressured the economy at the end of 2014. Russia is also suffering from Western sanctions imposed on Moscow over the Ukraine crisis, although the Kremlin has repeatedly denied any involvement other than providing aid for victims.

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