Moody’s explained why foreign capital will return to Russia

© AP Photo / Mark LennihanРейтинговое Moody’s. Archival photoMoody’s explained why foreign capital will return to Russia© AP Photo / Mark Lennihan

Good financial performance, demonstrated by Russian companies, will help to return to the country capital to foreign investors, said in an interview with RIA Novosti, senior Vice President, senior analyst Moody’s sovereign rating of Russia Kristin Lindow (Lindow Kristin).

«For example, recent reports of the high profit companies quite naturally can lead to a return of the inflow of funds from foreign investors. In addition, the cleaning of the banking sector, which holds the Bank of Russia has significantly reduced the volume of capital outflows,» she said.

According to Lindow, there are many factors that contribute to the inflow and outflow of capital, and not all the factors leading to the outflow, necessarily negative.

«What we are seeing now is a rather normal market factors, rather than capital outflows. On the other hand, I believe that the uncertainty created by the threat of additional sanctions from the United States, may continue to restrain capital inflow», — the expert added.

According to the Bank of Russia, net capital outflow from Russia in the third quarter grew by 48 times compared to the same period last year and amounted to 19.2 billion dollars (versus 0.4 billion). The net capital outflow for the first three quarters grew by 2.3 times compared to the same period last year and amounted to 31.9 billion dollars.

Moody’s explained why foreign capital will return to Russia© Vitaly Podicipedidae

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