Capital inflows into the country last year exceeded flight by $41.5 billion, a record high indicator that has prompted some experts to talk about the Russian economy finally gaining ground following the collapse of Soviet-era economic ties and the command economy.
"In 2006, we witnessed record high net private capital inflow into the Russian economy, which stood at $41.5 billion," said Alexei Savatyugin, head of the ministry's financial policy department. "Maintaining such an impressive capital inflow level this year will be rather difficult."
Savatyugin said ruble appreciation was also expected to slow down in 2007 due to a decline in oil prices that began late last year and has continued into 2007, which would explain in part a decline in capital inflow.
Respected business daily Vedomosti highlighted the figure Thursday, publishing an article by Mikhail Delyagin, director of the Institute of Globalization Studies think tank.
Although admitting that borrowing by state-run companies accounted for a substantial portion of capital inflow last year, Delyagin said the figure marked a watershed in Russia's economic development.
Citing statistics for previous years, Delyagin said inflow exceeded flight by a mere $1.1 billion in 2005, whereas in 2003 capital flight surpassed inflow by $1.9 billion, and by $8.1 billion and $8.4 billion in 2002 and 2004, respectively.
Delyagin said some factors that contributed to the growth in capital imports would not help in 2007. Oil prices, for one, which were continuing to decline, would affect the volume of stock exchange transactions.
The expert said expectations of who would succeed Vladimir Putin as president in 2008 and the resulting political uncertainty would also influence financial transactions.
But he said last year's capital figures proved that Russian business had learned to survive and flourish in the most adverse administrative circumstances.
"It is a sign of a new level of our country's adaptation to free market requirements," he said.
