Russian Central Bank Increases Capital Flight Estimate by $38 Billion
Russia's Central Bank has upped its estimates of capital flight for this year to $128 billion from $90 billion, the bank announced in a report released Monday.
"According to 2014's results, net outflow of private capital is estimated in the order of $128 billion, which is significantly higher than the forecast," said the Central Bank's prognosis for 2015 and 2016-17.
A slump in oil prices and a falling ruble have heaped pressure on Russia's already slowing economy this year as Western sanctions on Moscow over Ukraine have increased political risk and dampened hopes of a return to growth.
In its report, the bank said it expected sanctions to remain in force until the end of 2017.
The Central Bank previously expected capital flight to hit $90 billion this year and $35 billion in 2015.
Capital flight was $63 billion last year and $56.7 billion in 2012, according to the bank.
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