## Capital Flight from Russia

_IMF Policy Discussion Papers, June 1, 2000_

## Source details

**Canonical URL:** [Capital Flight from Russia](https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/capital-flight-from-russia-3602)

## Other formats

- [Markdown version](/en/publications/imf-policy-discussion-papers/issues/2016/12/30/capital-flight-from-russia-3602/index.md)
- [Structured JSON version](/en/publications/imf-policy-discussion-papers/issues/2016/12/30/capital-flight-from-russia-3602/index.json)
- [Bundle manifest](/en/publications/imf-policy-discussion-papers/issues/2016/12/30/capital-flight-from-russia-3602/bundle-manifest.json)

## Bibliographic details
- Authors: Prakash Loungani, Paolo Mauro
- Published: June 1, 2000
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451972115.003

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### Summary and central argument
- This paper documents the scale of capital flight from Russia, compares it with that observed in other countries, and reviews policy options.
- The evidence from other countries suggests that capital flight can be reversed once reforms take hold.
- The paper argues that capital flight from Russia can only be curbed through a medium-term reform strategy aimed at:
  - improving governance and macroeconomic performance, and
  - strengthening the banking system.
- Capital controls result in costly distortions and should gradually be phased out as part of that medium-term strategy.

### Findings and evidence
- Capital flight from Russia is quantified and compared with other countries (detailed estimates are contained in the paper).
- Cross-country evidence indicates reversibility of capital flight following reforms.
- Channels and determinants of capital flight examined include:
  - export proceeds and channels of capital flight from Russia,
  - actions by institutional investors and hot money flows,
  - roles of commercial banks and financial institutions,
  - corruption, crime, and institutional weaknesses during transition.

### Policy recommendations
- Implement a medium-term reform strategy focused on:
  - improving governance,
  - improving macroeconomic performance,
  - strengthening the banking system.
- Gradually phase out capital controls to avoid the costly distortions they create.

### Subjects and keywords (as listed)
- Subjects: Balance of payments, Capital controls, Capital outflows, Commercial banks, Corruption, Crime, Exports, Financial institutions, International trade
- Keywords: Baltics; capital; capital control; Capital controls; capital flight; capital flight from Mexico; capital flight yield; Capital outflows; channels of capital flight from Russia; Commercial banks; concept of capital flight; control; Corruption; costs of capital capital flight; determinants of capital flight; Europe; export proceeds; Exports; extent capital flight; hot money; institutional investor; PDP; root causes of capital flight; Russia; transition; yearly capital flight

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## Content in this bundle

- **Capital Flight from Russia - PDP/00/06**
  - [Capital Flight from Russia - PDP/00/06 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/pdp/2000/_pdp06.pdf.md){rel="alternate" type="text/markdown"}
  - [Capital Flight from Russia - PDP/00/06 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/pdp/2000/_pdp06.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/capital-flight-from-russia-3602_