Belousov upbeat about investment inflow, says capital flight a myth

File Photo of Cash, Coins, Line Graph

(Interfax – SOCHI, April 22, 2013) Economic Development Minister Andrei Belousov has described claims that capital outflow from Russia has assumed a “gigantic” scope as a myth.

“Assertions that capital outflow has assumed a gigantic scope, and that there are signs of capital flight are a myth,” Belousov told reporters after a meeting on economic issues chaired by President Vladimir Putin.

A large inflow of direct foreign investment has been observed for a third quarter in a row, he said.

“They amounted to $15 billion-$16 billion in the first quarter, even if the deal with TNK-BP is not taken into account. If the deal is not excluded we had a $31 billion record, if excluded – some $15 billion, which is a very good result,” Belousov said.

Capital outflow is mostly connected with banks’ operations to augment assets, he said.