Russia's capital flight to double to $70 billion in 2011
AP, Tuesday 1 Nov 2011
Central bank says global turmoil is prompting foreign investors to withdraw while Russians are reacting to an 'unfavourable investment climate' by putting their money elsewhere

Russia's Central Bank says its expects the amount of money leaving the country to double to US$70 billion this year.

The bank said in a paper submitted to the Russian parliament Tuesday that the reason is twofold: foreign investors are withdrawing from emerging markets amid the global financial turmoil and Russians are investing money elsewhere because of an "unfavourable investment climate" in the country.

Russia saw capital outflow at about $34 billion last year.

Economists have said the money is headed away from Russia to safer havens not only because of the global downturn, but also due to political uncertainty.

Russian President Dmitry Medvedev and Prime Minister Vladimir Putin had refrained from announcing their plans regarding the March presidential election before Putin suddenly announced his bid in late September.