Center for Security Studies

Russian Capital Flight - How Big a Problem Is It for Russia’s Growth?

Russian Capital Flight - How Big a Problem Is It for Russia’s Growth?

Author(s): Ben Aris
Editor(s): Stephen Aris, Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines, Hans-Henning Schröder, Aglaya Snetkov
Series: Russian Analytical Digest (RAD)
Issue: 140
Pages: 7-10
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen; Institute for European, Russian and Eurasian Studies, George Washington University
Publication Year: 2013

Economists have been wrong footed by 2013, as the expected slowdown of the Russian economy has been a lot more severe than expected. Persistent capital flight is partly to blame, but the problem is not as bad as it was in the 1990s. Capital flight is being driven by a combination of Russia’s poor economic performance and by political uncertainty caused by the Kremlin’s escalating crackdown on corruption.

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