Crs Report for Congress: Russian Capital Flight, Economic Reforms, and U. S. Interests

ISBN-10: 1293255807
ISBN-13: 9781293255803
Series: Crs Report for Congress
Pages: 24
Language: English
Published: 2013-11
Publisher: BiblioGov
Authors: John P. Hardt, William H. Cooper, Congressional Research Service: The Libr

Description

Russian capital flight is a longstanding problem with very negative consequences for the Russian economy. Authoritative studies estimate Russian capital flight to have totaled $150 billion from 1992-1999. Recent reports of Russian money laundering and other financial scandals involving the Russian Central Bank, the Bank of New York, other commercial banks, and even former President Yeltsin's household involve forms of capital flight and have drawn greater attention to the problem. They have been the subjects of recent Congressional hearings and have focused the attention of Members of Congress and others on U.S. interests in Russia. Some legislation has been proposed as a result of concern over the these scandals and Russian capital flight. Capital flight deprives the Russian economy of critical financial resources that could be used for investment, tax revenues, restructuring pensions, and other social security programs. More importantly, capital flight indicates a lack of confidence by Russian and foreign investors and residents in the Russian ruble, in the Russian financial system, and more generally in the Russian economy itself. Capital flight is a sign that Russia's transition to a market economy continues to be incomplete. An analysis of the rationale for Russian capital flight suggests that to reverse ...