An Analysis of Russia’s Economy Relative to Its Capital Flows

In an announcement by Sergei Moiseyev on May 09, 2011, the Central Bank’s Deputy Director said that the top 30 banks in Russia including its largest Sherbank and the Bank of Moscow originated $20 billion in capital outflows in the first half of 2011. At an international banking forum in Moscow, Moiseyev claimed, ‘We are noting a dual trend: on the one hand, banks are trying to find new niches and sectors where they could lend successfully under acceptable risks, and on the other hand, banks are becoming actively involved in capital export.’ 1 The Russian capital outflows in question were outflows destined for foreign interbank loans and loans to foreign investors.