25 Mar 2014
Russia to suffer further capital outflow - Investec
Jonathan Pryor, Corporate Treasury Analyst at Investec comments that the G7 (usually G8 as Russia were excluded) met yesterday to discuss a collective response to the crisis in Ukraine.
Key Quotes
“Meanwhile the Russian and Ukrainian foreign ministers held talks in what was the first direct dialogue since Russia entered Crimea causing international friction. Reports say the Russian foreign minister was unfazed by the G7's reaction to Russia's annexing of Crimea, although no amount of gamesmanship can hide the fact that the Russian economy continues to suffer.”
“Russia will see the largest capital outflow in Q1 2014 since the 2008 financial crisis it was announced yesterday, as relations with the West have sharply deteriorated. It is reported Capital outflow in Q1 2014 will reach between $65 billion and $70 billion, slightly higher than for the whole of last year, and the highest level since Q4 2008, when the Lehman collapse was taking full effect.”
“Almost half of the quarterly outflow took place in March. Economic reports over the last few days have estimated a capital outflow of around $100 billion would see Russian GDP shrink to 0% growth.”
Key Quotes
“Meanwhile the Russian and Ukrainian foreign ministers held talks in what was the first direct dialogue since Russia entered Crimea causing international friction. Reports say the Russian foreign minister was unfazed by the G7's reaction to Russia's annexing of Crimea, although no amount of gamesmanship can hide the fact that the Russian economy continues to suffer.”
“Russia will see the largest capital outflow in Q1 2014 since the 2008 financial crisis it was announced yesterday, as relations with the West have sharply deteriorated. It is reported Capital outflow in Q1 2014 will reach between $65 billion and $70 billion, slightly higher than for the whole of last year, and the highest level since Q4 2008, when the Lehman collapse was taking full effect.”
“Almost half of the quarterly outflow took place in March. Economic reports over the last few days have estimated a capital outflow of around $100 billion would see Russian GDP shrink to 0% growth.”