Page 45 - RusRPTJul19

5.2.3 Capital flight dynamics
Net capital outflow from Russia in January - May 2019 doubled to $35.2bn, compared with $18.9bn in the same period last year, according to a report of the Central Bank of Russia. “The value of the indicator was formed mainly as a result of operations of banks and other sectors on the acquisition of foreign assets, while the contribution of changes in external liabilities was minimal,” the article notes. In 2018, according to the Central Bank estimates, the export of capital from Russia by the private sector amounted to $63.3bn compared to $25.1bn in 2017.
Arrest of founder of Baring Vostok Michael Calvey was a shock for the Russian economy doubling capital outflow, head of the Audit Chamber Alexei Kudrin said at the St. Petersburg International Economic Forum on Thursday. “Indeed it is a shock, capital flight from Russia has doubled since the start of the year, it is now more than US $40bn, has reached this level since the year start,” Kudrin said. In mid-February, the Basmanny District Court of Moscow arrested Calvey and five other defendants for two months over alleged RUB2.5bn embezzlement from Orient Express Bank. In April, Calvey was released under house arrest, and it was prolonged until July 14. Investigators believe that Calvey, his partner Phillippe Delpal, and several other unidentified managers convinced shareholders of Orient Express Bank to vote for a compensation agreement to receive a 59.9% in International Financial Technology Group instead of money.
45 RUSSIA Country Report July 2019 www.intellinews.com