BOFIT Weekly Review 2015/16
Capital outflow from Russia continued strong due to foreign debt payments
The net capital outflow of private sector in the first quarter was $33 billion, down from $48 billion a year earlier. Banks paid down considerably more old debt than took new, but also actively repatriated assets from abroad. Non-bank firms appear to have been able to extend their foreign loans as their net payments of foreign debt were much more modest. More forex cash was sold than bought in Russia for the first time in over a year.
As of end-March, Russia’s total foreign debt was $560 billion. The value of debt has declined substantially since the peak at over $730 billion in mid-2014. Part of the reduction in the value of the debt reflects the ruble’s depreciation (about a quarter of Russian foreign debt is denominated in rubles). In 1Q15 the effect of exchange rate changes has, however, been more modest. The public sector accounts for less than 10 % of foreign debt.