Private sector capital flows between Russia and abroad remain modest

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/42

Preliminary balance-of-payments figures show private sector net capital flow reversed in the third quarter mildly into Russia. Banks continued to pay down foreign debt, but reduced also their receivables from abroad by about the same amount. In contrast, non-bank enterprises paid down even less foreign debt in relation to scheduled debt payments than in previous quarters, implying that they were able to roll over a large share of their debt.

As in the first half, outbound flows of grey capital were practically non-existent and more forex cash was sold than purchased. Inbound direct foreign investment flows remained very modest. As earlier, more FDI flowed out of Russia than came in, even if FDI outflows were also considerably diminished from previous years. 

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