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#11 - JRL 8176 - JRL Home
Capital flight no longer a disaster for Russia

LONDON. April 21 (Interfax) - Private capital flight has stopped being a disaster for the Russian economy, Vneshtorgbank President Andrei Kostin said at a Russian economic forum in London.

For the first time in Russia's post-Soviet history, capital flight can be replaced with net inflow of capital, which is estimated at $3 billion to $4 billion in 2004, he said.

"This means that money that was once taken out of Russia is returning. And the owners of this capital and those that took part in Russia's privatization are probably counting on certain political guarantees for their property from the Russian authorities," Kostin said.

An important element in creating a climate of trust between the authorities and business might be a capital amnesty, for which there were high hopes among the business community several years ago, he said.

"Kazakhstan, for example, carried out such an amnesty and the did not lose out. This, unfortunately, did not happen with us and the delay dragged out," Kostin said.