In Russia recorded a record outflow of investment

В России зафиксирован рекордный отток инвестиций

Investors do not believe in the Russian economy and withdrawing money

The illusion of normalization of relations between Russia and the West has definitively disappeared.

For the past four months, foreign investments in Russian assets decreased by $1.6 billion Is a record outflow of capital in the last three and a half years, writes Kommersant, citing data from the American organization Emerging Portfolio Fund Research (EPFR).

Only for week from 22 to 28 June, according to the newspaper, based on data from Renaissance Capital from funds focused on Russian market, withdrawn more than $83 million.

The current outflow is due to several factors, primarily internal risks that led to the deterioration of the investment climate. Among them, the unmet aspirations of rapprochement with the US under the new President Donald trump, the intensification of the conflict between Rosneft and Sistema, as well as the drop in oil prices.

“The illusion of normalization of relations between Russia and the West has definitively disappeared. Quotes of Russian shares dropped to the levels that started the rally in the second half of 2016,” – said in comments the Director of the analytical Department of the IR Region Valery Weisberg.

Market participants admit that the ruble assets will be sold in the future, albeit in smaller volumes, Kommersant said.

It is also reported that outflows from Russian funds occurs on the background of their inflow to the assets of other developing countries. According to EPFR, last week funds emerging markets attracted almost $1.9 billion, and in four months – almost $28 billion.

Leaders in attracting funds from the BRIC countries were India and Brazil funds have four months invested, respectively, $2.6 billion and $1 billion in the Russian stock market was among the outsiders.

As reported Корреспондент.netnet capital outflow from Russia has doubled since the beginning of the year. In January-aperelya of Russia withdrew $21 billion.