Russia is running out of money: capital outflows reach record hundreds of billions of dollars
Capital outflows from Russia are breaking all records. In particular, since the beginning of the large-scale invasion of Ukraine, it has reached $253 billion, which is 13% of Russia's GDP.
This was announced by the Head of the Presidential Office Andriy Yermak. He noted that
- in 2022, $239 billion left Russia - "this is four times more than in 2021";
- in the first half of 2023, the outflow amounted to an additional $27 billion.
"Capital outflows from Russia since the start of the large-scale invasion have reached a record $253 billion. The rate reached 13% of GDP and broke all possible records," the report said.
What is being said in Russia
The Russian Federation itself confirms these figures. They call the current situation "unprecedented".
"After the outbreak of the war with Ukraine, the Russian economy experienced an unprecedented capital flight in recent history. Its total net outflow from February 2022 to June 2023 reached $253 billion, according to the calculations of the Centre for Macroeconomic Analysis and Forecasting and the Central Bank's statistics," local media reported.
At the same time, they remind us that the rate of capital outflow from Russia was lower even in 2008, amid the global financial crisis, and in 2014, after the annexation of Crimea. Back then, "it was about 11% of GDP, or about $150 billion a year."
Putin is destroying the Russian economy
Earlier, analysts of the American Time magazine concluded that Russian President Vladimir Putin is destroying the Russian economy, leading it to collapse. And he is doing this deliberately - in order to:
- continue to be able to finance the war against Ukraine;
- to survive himself.
"Putin is financing his invasion of Ukraine not only through small exports of goods or evasion of sanctions, but also through the cannibalisation of Russia's productive economy. As an authoritarian dictator with state control over 70 per cent of the economy, Putin will never run out of money," the article says.
In particular, it is emphasised that the Russian president levies "draconian" taxes on "unforeseen circumstances" on almost "everything that moves". However, despite this, Russia reached a record budget deficit in 2023.
As OBOZREVATEL reported, at the same time, prices for dental services soared in Russian regions. In some places, the growth exceeded 250%. The reason lies in sanctions and logistical problems, which led to a shortage of quality consumables.