Capital flight from Russia is the result of growth in interest rates in the world markets

Sunday, June 26, 2022

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Russia's Finance Minister Alexei Kudrin said it Monday, addressing a conference hosted by the Russian investment group Renaissance Capital. "Last year, capital flight was basically due to this tendency," he said. "The Russian government's ambiguous tax management activity has added to the process." According to Kudrin, a new plan of action on tax management has been coordinated resulting in the drafting of a new bill related to this problem. "Unfortunately, I have to admit that the Yukos case has definitely impacted the internal market," Kudrin said. The minister also said that the ruble would become fully convertible in 2007, adding that, in his opinion, "convertibility" means a "total liberation of capital movement". "There should not be any limits on foreign capital. All revenues and profits will be able to be repatriated without limits," Kudrin said, adding that this will "raise capital efficiency". Kudrin said that with the ruble's convertibility, "many countries will accept it as a means of payment, taking into account the possibility of its unlimited exchange any time and hour and also the ruble-strengthening trend."

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