Foreign Funds Withdrew $1 Billion from Russia During 2018
OREANDA-NEWS During last 12 months, investors withdrew more than $1 billion from funds focused on the Russian market.
"More funds lost only in 2013- $ 3.1 billion," the media points out.
The funds of China recorded during the year, the influx of $31 billion, over $500 million came to the funds of Brazil. At the same time, the outflow of almost $3.5 billion was recorded from Indian funds.
The desire of investors to withdraw money from the Russian market, specialists explains the geopolitical background around the country, the introduction of new US sanctions, as well as lower oil prices. In early October, a barrel of Brent crude oil was worth more than $ 80, and in December its price fell to $54.
At the same time, the publication notes that the Russian stock market showed stability, the Moscow exchange index, calculated in rubles, increased by 11%, and the RTS dollar index decreased by only 7%. Domestic private investors showed interest in investing in shares of Russian companies. The newspaper refers to the data of Investfunds, which for 11 months of 2018 in Mutual funds of shares and mixed investments received almost 30 billion rubles., which was a record in the history of funds of these categories. Also significantly increased investments in shares by wealthy Russians. According to the analytical Agency Frank RG, over the past year the volume of investments in shares reached 560 billion rubles.
In September, the Bank of Russia said that the rate of capital outflow from the country exceeded previously predicted: the volume of net capital outflow by the private sector for the first eight months of 2018 was 2.76 times more than in January—August 2017 ($26.5 billion against $9.6 billion). At the end of January-October 2018, the capital outflow from Russia amounted to $ 42.2 billion.
In November, the press Secretary of the Russian President of Dmitry Peskov said that there is no reason for unrest due to the growth of capital outflow. "Different conjunctures. But at the same time in the country there are absolutely free conditions for investment, and this is a guarantee that the outflow will be replaced by an inflow," Peskov stressed then.
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