Russian capital flight from west to east has begun. Let’s not forget that Russia has repeatedly expressed its dismay at Europe’s handling of the debt crisis in Cyprus which imposed heavy losses on uninsured depositors, many of them Russian, and with Crimea almost under total control, well your guess is as good as mine. Furthermore there are Chinese whispers among property developers that Kremlin will make Crimea the new TAX FREE play ground for Russia’s wealthy elite, after all it is in Putin’s interest to show the Western Ukrainians that they have picked a bankrupt inept European Union, rather than joining a dynamic custom union with Russia which has a strong focus on trading with India and China.
Mr Sergei Glazyev, who is often used by the authorities to stake out a hard-line stance but does not make policy, was cited by RIA news agency as saying Moscow could recommend that all holders of US treasuries sell them if Washington freezes the US accounts of Russian businesses and individuals.
Last year, Russia scored a spectacular success in attracting $94 billion worth of foreign direct investment according to a report compiled by the United Nations and released in mid-February.
That was a massive increase of 83 percent over the previous year and put Russia third in the table behind China, which attracted $127 billion, and the U.S.
But the success of Russia’s Direct Investment Fund, which attracted about $10 billion of fresh commitment in 2013, is also a vital factor, the fund is well-placed to repeat that success in the coming years.
Capital flight is a catch-all description that combines normal trade and capital flows with individuals’ money being exported out of the country, which is estimated to be about one-quarter of total capital flight.
As many of you are undoubtedly aware, Russians love the beautiful TAX FREE lifestyle that Dubai offers, and if perhaps Crimea was to offer the something a little similar, well your guess is as good as mine, Crimea could be, what Gibraltar is to the British.
Just read the tweets below!!!