Net capital outflow from Russia fell roughly fourfold in 2016

As demonstrated by Bank of Russia estimates of Russian balance of payments published on Tuesday, the net private capital outflow in 2016 stood at USD15.4 billion as compared with USD57.5 billion in 2015. This sharp contraction in the net capital outflow was due to a less energetic cut in external liabilities by the banking sector.

According to Bank of Russia estimates, current account surplus of Russia’s balance of payments in 2016 totalled USD22.2 billion, which is significantly less than in 2015 (USD69.0 billion). Russian current account was shaped by a slowdown in the reduction of exports of goods amid recovery in global commodities prices, given the stabilising imports of goods and diminishing deficits in balances of services and compensation of employees.