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commercial banks; the latter explains the positive reversal in capital flows trend.
Overall, the data shows that Russia’s external accounts remain in a solid state – clearly one of the greatest advantages of its economy.
5.2.3 Capital flight dynamics
Net capital outflow from Russia in 2019 declined 2.4-fold year-on-year to $26.7bn, according to the data of the Central Bank of Russia. Much of what is labelled “capital flight” in Russian accounts is actually banks deleveraging.
As reported by bne IntelliNews, in 2019 Russia continued to improve its external position, with its net public debt falling to zero for the first time since the introduction of sanctions and the collapse of oil prices.
The current account of Russia's balance of payments remained stable in 3Q19 and 9M19, posting a surplus of $57.2bn for 9M19 and $12.9bn in 3Q19, in line with analysts' expectations. The capital outflow reached $33.7bn in the private sector in 11M19, compared with $54bn in 11M18, according to the previous data.
According to the latest data, in 4Q19 alone, net capital outflow amounted to $5.9bn, after inflow of $2.1bn in 3Q19, $13.3bn outflow in 2Q19, and outflow of $24bn in 1Q19.
42 RUSSIA Country Report February 2020 www.intellinews.com
