Nr. 140: Capital Flight and Off-Shore Investment

Autor(en): Svetlana Ledyaeva, Päivi Karhunen, Riitta Kosonen, Helsinki-Espoo, John Whalley, Ben Aris
Herausgeber: Stephen Aris, Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines, Hans-Henning Schröder, Aglaya Snetkov
Serie: Russian Analytical Digest (RAD)
Ausgabe: 140
Verlag(e): 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
Publikationsjahr: 2013

This edition examines the issues of capital flight and off-shore investment in Russia. In the first article, Ledyaeva, Karhunen, Kosonen and Whalley investigate foreign investment from offshore jurisdictions into Russia, concluding that corrupt public officials utilize roundtrip schemes via offshore centers for laundering the proceeds of corruption. They highlight a trend whereby offshore investors choose to invest in the more corrupt regions of Russia within the real estate and financial sectors. In the second article, Ben Aris suggests that persistent capital flight is only partly to blame for the slowdown of the Russian economy in 2013, noting that capital flight is not as bad as it was during the 1990s. It is suggested the current capital flight is being driven by a combination of Russias poor economic performance and political uncertainty caused by the Kremlins escalating crackdown on corruption.

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