Proportion of ‘Grey Capital’ Outflow from Russia Reached 20%-40% in 2012-2013 – Medvedev

MOSCOW, April 22 (RIA Novosti) – The proportion of “grey capital” outflow from Russia in 2012-2013 reached 20 percent to 40 percent, Russian Prime Minister Dmitry Medvedev said Tuesday during his annual report in the country’s lower house of parliament.

“One of the forms of outflow comes from those who are looking for more attractive markets for their money. And that is reason enough to think that our conditions aren’t attractive, which is a limitation on our market,” Medvedev said.

“But the second form of outflow, is taking capital out that has a specific origin that we must follow. According to the figures we have, last year and the year before this type of ‘grey capital,’ which we can’t see as capital, but which has appeared as a result of legal actions, is a significant proportion to the outflow of 20%-30%, and sometimes even 40%,” Medvedev said.

According to Russia’s Central Bank, the outflow of capital in 2013 grew to $62.7 billion from $54.6 billion in 2012.

The Russian Premier was delivering his annual report in the lower house of parliament earlier on Tuesday. Russia’s economic development in the wake of growing hostility from the West was high on the agenda.

Medvedev stressed that Russia’s authorities could minimize the consequences of the sanctions imposed against Russian economy.

“I am certain that we are able to minimize their [the sanctions] effects. The government is ready to act in conditions, when the priority becomes the protection of the economy as well as the citizens from such unfriendly actions that may follow a tensioned foreign policy situation,” Medvedev said.

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