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Russia sees $ 13 bln of capital outflow

05 March 2011 10:40 (UTC +04:00)

Baku â€“ APA-Economics. Some $13 billion left Russia in capital outflows in January, RIA news agency quoted the central bank’s first deputy chairman Alexei Ulyukayev as saying on Friday, Reuters reported.
Outflows of from Russia took place even as oil prices rallied to levels of $100 per barrel [O/R], propping up the rouble and easing concerns about the health of the federal finances.
Capital has fled the country as investors hedge risks ahead of presidential elections due in 12 months’ time, Finance Minister Alexei Kudrin said earlier this week.
Outflows may have been also prompted by Russia’s budget policy, which envisages increasing spending and needs higher incomes to fill its coffers. Social security levy was raised to 34 percent from 26 percent effective from Jan. 1.
"There was a rapid increase in the social security tax and capital outflow reflected business’ concerns that the government may continue increasing tax burdens," said Natalia Orlova, chief economist at Alfa Bank.
"I do not think that capital outflows were caused by inflation or fluctuations in the rouble exchange rate."
Russia expects to see modest capital inflows this year after net $38 billion left the county in 2010.
Speaking on the sidelines of central bankers forum in Paris, Ulyukayev also said on Friday that in the first four days of March the central bank purchased around $1 billion in interventions aimed at easing upside pressure on the oil-boosted rouble. That compares to interventions of around $4.5 billion in February.