MOSCOW (Pakistan Point News / Sputnik - 26th October, 2018) Good financial results shown by Russian companies may facilitate the return of foreign investment to the country, Kristin Lindow, Moody's senior vice president, said in an exclusive interview with Sputnik.
"For example, recent strong corporate profits quite naturally can result in repatriation of profits by foreign investors. Also, the cleanup that the CBR has done in the banking system has reduced significantly capital flight," Lindow, who is the leading Russia's sovereign rating analyst at Moody's, said.
Lindow stressed that there are many factors contributing to capital inflow and outflow, and not all of the factors leading to capital outflow are negative.
"Now what we see is normal market forces less than capital flight. On the other hand, I do think that the uncertainty created by the threat of additional US sanctions could continue to deter capital inflows," she added.
According to the Russian Central Bank, in the third quarter of 2018, net capital outflow from Russia increased by 48 times year-on-year, making $19.2 billion, compared to $0.4 billion.
