The Problem of Capital Flight from Russia

Diversification of assets is the main task of investors. Investing capital only in their own country is an indicator of a lack of financial market development. The phenomenon of capital flight from the country is not a problem in hole. But the main problem of this is determination of capital flight structure because in 90-s most people invest their money in another country to save them from high inflation, depreciation of the national currency led to a desire to protect the citizens of accumulation by investing in foreign assets. In accordance with international practice, the phenomenon of "capital flight" occurs and progresses in the economies of the countries which has a significant level of corruption, high inflation and, consequently, higher inflation expectations, the risk of devaluation of the national currency, a significant stock market volatility, the high level of taxation, significant financial and moral costs of the organization and business support, as well as the lack of reliable legislative and administrative mechanisms for the protection of investor’s rights. In this work are presented results of "flight capital” estimations in accordance with the most famous procedures. According to the analysis, Russian economy is mainly investing in offshore and outflow of capital on in average from 0.785 to 138 billion. US dollars per year.