MOSCOW, July 4 (RIA Novosti) - Net capital inflow into Russia hit $67 billion in January-June 2007 from $14 billion in the same period last year, the chairman of the Russian Central Bank said Wednesday.
Sergei Ignatyev said auctions for the assets of bankrupt oil company Yukos and the initial public offerings by state-run retail savings bank Sberbank and government-controlled foreign trade bank Vneshtorgbank (VTB) were the main factors contributing to a sharp increase in capital inflow in Russia.
Ignatyev said net capital inflow in Russia was expected to be $70 billion in 2007, compared with $42 billion in 2006.
Ignatyev earlier said a considerable slowdown in capital inflow into Russia in the second half of the year would contribute to slower growth in the country's gold and foreign currency reserves and money supply.
As a result, the Central Bank will be able to keep inflation within the 8% target and the ruble's appreciation against the dollar/euro basket will stay within the range of 4-5% in 2007, Ignatyev said.
