Capital inflow in Russia under sanctions

Abstract

The article examines the recent trends in Russia’s capital inflow (over 12-18 months). The author proves that the main reason of capital inflow decrease was devaluation of the Russian currency - rouble. It is shown that economic sanctions of developed countries had negative effects on Russia’s balance of payments. Different evaluations of capital inflow in the medium term outlook are compared. Particular attention is paid to foreign direct investment due to its plunge. The changes in external markets’ environment force Russia’s companies and banks to work out new investment strategies and to look for alternative sources of capital. Under the circumstances, the author pays attention to investment cooperation with Asian countries. Business activities of Russia’s companies on the Chinese financial market are also considered.