May 6th, 2011

$26.3 billion in Capital Flight in Through April

Source: UNCTAD

Financial Times reports of $26.3 billion in capital flight leaving Russia through April of this year. Arkady Dvorkovich, President Medvedev’s top economic advisor said,

The assessment by the president is that we did not have real progress in improving the investment climate. We need progress now in the short term. Investment is very low and capital flight is very high.

Conventional wisdom says uncertainty with the 2012 presidential election is making investors, both foreign and domestic skittish. But with little substantive difference between the tandem leadership, investors seem to reacting to Russia’s infrastructure.

Chris Barter, co-chief executive of Goldman Sachs in Russia, insists

Some kind of enduring reform of the financial and judicial system is needed because currently the rate of capital outflows is unsustainable.

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