Tashkent, Uzbekistan (UzDaily.com) -- According to BCS Global Markets, capital outflow from Russia continues to accelerate, despite a decrease in foreign currency inflows from exports. The total outflow from the Russian stock market for the last week of August this year made up US$30 million. In total, for January-July 2020, capital outflow reached US$34.9 billion and was 1.5 times higher than the figure for the same period in 2019.

At the same time, the net inflow of foreign exchange into the country decreased by half - to US$24.6 billion in January-July of this year. At the same time, the main volume of income was in the first quarter of this year (US$21.7 billion). In July of this year. the gap in currency flows has reached 3 times the size:

according to the current account - the country received US$2.3 billion, and the private sector exported US$6 billion.

Against this background, for seven months of this year, Russia’s international reserves decreased by US$8.8 billion against an increase of US$43.1 billion over the same period of 2019.

Experts point out the following as the main factors influencing capital outflow.

First, the extremely negative price conditions for Russian exports. As analysts of Promsvyazbank note, oil prices have fallen, the real volumes of supplies of natural gas, coal, machinery and equipment, oil and oil products have significantly decreased. Neither a decrease in imports of goods nor a reduction in the deficit in trade in services and net investment payments could compensate for the drop in exports.

Secondly, the acceleration in the rate of spread of COVID-19 in the world. According to the University of J. Hopkins, in the last week of August this year recorded 240-288 thousand new cases of infection against 200-260 thousand a week earlier.

Third, the growth of geopolitical tensions around Belarus, as well as the presidential race in the United States. As noted by April Capital, the reaction of foreign investors to what is happening in the neighboring state is negative. They fear a repetition of the Ukrainian scenario, so they fix the profit received on Russian shares. Uncertainty is also added by the upcoming elections in the United States, where the possible victory of the Democrats threatens the Russian Federation with new sanctions.

In general, according to experts, the main consequences of capital outflow may be a reduction in foreign exchange reserves and a weakening of the ruble, with subsequent negative consequences for the main trade and economic partners of the Russian Federation.