Capital outflows from Russia have slowed markedly in recent quarters and the nature of these outflows has changed too – they are now driven by Russian companies repaying their external debts, rather than by Russian residents buying foreign assets. But while capital outflows should stay well below their 2014 peak, the key point is that they will persist. This means Russia will need to continue running current account surpluses which, in an environment of low oil prices, will ensure that domestic demand stays suppressed.
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