Russia May See Capital Inflow After March Vote, Klepach Says

Russia will probably have net capital inflows resume after the March presidential election, Deputy Economy Minister Andrei Klepach said.

Russia may show a net inflow in the second half, although the result for the full year isn’t yet clear, Klepach told reporters today in Moscow. While the ruble may continue to appreciate in the “short term,” there are “no reasons for a sharp change in the ruble’s trend,” he said.

The presidential election, contested by Prime Minister Vladimir Putin, will be held on March 4. The country’s net outflow of capital more than doubled last year to $84.2 billion, reaching the second-highest level since central bank records began in 1994, Bank Rossii estimates.

Inflation this month probably won’t exceed the rate in January, when it reached about 0.5 percent, according to Klepach. The government will run a budget deficit of about 1 percent of gross domestic product, less than forecast, he estimates.

Industrial production is slowing, with stagnation “very probable” for manufacturers over the coming months, Klepach said.

To contact the reporter on this story: Scott Rose in Moscow at

To contact the editor responsible for this story: Balazs Penz at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.