Import and Export of Capital from Russia under Sanctions and Response Measures

Abstract

The article deals with external sanctions and Russia’s response in connection with the conduct of a special military operation. The subject of the study is mutual measures to restrict the movement of capital, their adjustment by the Russian side as the economy adapts. Particular attention is paid to the problem of the withdrawal or suspension of activities of foreign companies in Russia: the initial scale of the exodus and their possible consequences are assessed, strategies for the behavior of foreign investors are given, as well as response measures from the Russian government in order to protect the economic interests of the country. It is noted that under the current conditions, Russian business is also forced to sell and regroup its foreign assets, look for new markets and stock platforms to place its securities and invest in foreign ones. An analysis of the balance of payments of the Russian Federation for 2022 indicates a sharp reduction in accumulated liabilities. At the same time, the outflow of capital from the private sector continued, amounting to a record 10 % of GDP, which is a deduction from the country’s investment potential. In conclusion, the consequences and risks for the Russian economy from the adoption of mutual restrictions on the cross-border movement of capital are indicated. Including: an increase in the volatility of the ruble due to a decrease in the infl uence of the fi nancial account, as well as the withdrawal of funds abroad from the sale of foreign assets; an increase in the debt burden on the corporate sector; falling stock market liquidity; problems with enterprise management and reconfiguration of technological processes after the transition to Russian owners, etc.