The capital outflow is one of key problems of the Russian economy, it is being solved by means of the legislation aimed at de-offshorizing economy, experts said at a Round Table ‘Reasons, Structure and Scale of the Russian Capital Outflow’ which was held at the Analytical Center.
Experts discussed the impact of the capital outflow on investments and economic growth, the practical application of the Federal Law № 376-FZ off 24.11.2014 and first results of the capital amnesty. The discussion touched upon international practices of de-offshorizing and its possible application in Russia.
Peter Grintser, the Chief Economist of the Monetary Policy Department of the Central Bank of the Russian Federation believes that the capital outflow is not a reason to fret. ‘The capital outflow and offshoring are two different things. The capital outflow from Russia is a standard situation. The State exports a large amount of oil and other commodities so we see a significant surplus of the current account and the financial account deficit,’ said the official. The expert noted that in 2016 the external debt repayment will still play a big role in the capital outflow, and 2017-2018 will be all about the growth of assets. Mr Grintser noted that to evaluate the capital outflow quality it is necessary to study its structure: where, how and what country the money goes in.
Evgeniy Mikhailenko, the Director General of the Association of System Management Experts ‘MihiKo’ is sure that one cannot create artificial barriers and restrictions for the capital outflow to abroad. ‘Keeping the money in a single system is impossible, surely there will be a way to move them out,’ said the expert. According to him, the main task of the industry is to make the capital owners want to leave it within the country. ‘If there are stimuli to invest within the country and a guarantee that their investments will be protected, a large amount of money will remain in the country,’ said Mr Mikhailenko. There should be investment environment, a guarantee that deposits are safe, political and economic stability, according to the expert.
Moreover, experts are sure that it is necessary to solve current problems of the Russian economy, namely the uncertain tax system, the unpredictable inflation, the inability to invest, ever-changing rules of the game.
Participants (in Russian)
Program (in Russian)