Posted on 12/18/2006 6:04:39 AM PST by eastern
While Russian financiers are proudly reporting about capital influx to the country, their foreign colleagues are calculating outflow of funds from Russia. It has been reported recently that Russians have placed $219.6bn on banks’ deposits abroad, which considerably exceeds deposits with domestic banks as well as the annual budget of the RF.
If so, who are the people placing a quarter of Russian GDP on outlandish accounts? Experts say, many accounts are opened by particular firms operating only to disguise the richest Russians. Funds are rapidly leaving the country: the amount of Russian capital in foreign banks, compared to the same rate last year, has grown by half. A little less than 50% of all funds “flew” to London, which is no wonder by the way, since the city has always been known as an untroubled place for capitals.
(Excerpt) Read more at russia-ic.com ...
People who can, are voting with their wallets. Some will even try to vote with their feet.
When the Russian government seized the country's bank savings a few years ago, they gave up any claim on Ivan's trust with his money.
Most of Russia's GDP is locked up in its military infrastructure.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.