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The inflow of foreign capital into Russia may have an adverse impact on the country’s economy.
This opinion was expressed by Deputy Chairman of the State Duma Budget and Tax Committee Mikhail Zadornov
at a press conference today. According to Zadornov, as interest rates are low in the world and high in Russia,
"foreign capital rates Russian assets as attractive." Mikhail Zadornov also stressed that such a situation
could be fraught with negative implications for Russia's "narrow and weak markets." Therefore, Zadornov
believes that it is necessary to create mechanisms to regulate the inflow of foreign capital into Russia.
Assessing Russia's balance of payments for 2002, Zadornov summarised the main success here.
Russia had managed to avoid any deterioration in the balance of payments reduce illegal capital flight.
However, legal capital flight increased. In general capital flight dropped in 2002, compared to 2001 by more than 25%
- from USD16.2 billion to USD 11.7 billion. Mikhail Zadornov also stressed that the country’s hard currency reserves
had reached their maximum level in 2002, rising to USD44 billion, growing in the past year by USD11.4 billion. Including gold,
hard currency reserves totalled USD47.8 billion.
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