Capital Outflow From Russia Unrelated to Rosneft, Sistema Companies' Litigation

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The recent capital outflow from Russia could be explained by a number of reasons, including the existing market trends and volatility and is not connected with the litigation between Russia's energy company Rosneft and the financial corporation Sistema, Kremlin spokesman Dmitry Peskov said Monday.

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MOSCOW (Sputnik) — Earlier in the day, Russian media reported that foreign investors reduce their investments to Russia's assets for four months and had transferred over $1.6 billion out of the country for this period. The media assumed that this situation had been caused by a number of reasons, including Russia-US ties, the Rosneft-Sistema litigation and decrease of the global oil prices.

"We are still considering that a certain volatility is always possible. The capital could freely come to the country and could freely leave it. These are mostly market factors and one processes are replace by another ones against the backdrop of the attractiveness of these or that parameters of investments for investors," Peskov said answering a question about the impact of the litigation on the investment environment in the country.

The official added that this process had only volatile and market nature.

"As for the abovementioned litigation, it lies solely in a judicial framework and has nothing to do with the investment environment in our country," the spokesman added.

By the end of 2014, Sistema had a controlling interest of Russia's oil and gas company Bashneft. Rosneft, Bashneft and the government of Russia's Republic of Bashkortostan demand to enforce over 170 billion rubles ($2.8 billion at the current exchange rates) from Sistema citing alleged damage inflicted to Bashneft. The financial corporation had repeatedly stated that the demands had no ground.

On June 26, Sistema and its subsidiary company reported about seizure of their assets in a number of communications, medical and energy companies within the framework of the lawsuit filed by Rosneft, Bashneft and the government of Russia's Republic of Bashkortostan in May.

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