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Russian capital flight 'nightmare'

Oct 17 2008 17:55

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Moscow - The scale of capital flight from Russia during the current financial crisis is taking on nightmarish proportions, a top government official told reporters in Moscow on Friday.

"No-one in their worst nightmare could have predicted the extent of capital flight," the official said, adding that $33bn had been taken out of the country in August and September alone.

The official blamed capital flight largely on "speculative capital."

Good economic conditions "brought a lot of speculative capital to Russia. Unfortunately we became a refuge for speculative capital. People who just come for a while, make a profit and then sell. That time has come," he said.

Russian stock markets have plunged, with the dollar-denominated RTS index losing more than two-thirds of its value since earlier this year.

- Sapa-AFP

 
 
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