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FX.co ★ Russian capital flees from London

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Forex Humor:::2015-05-18T15:13:00

Russian capital flees from London

Recently, a large-scale money outflow from the UK has been observed with large sums from Russian investors. According to statistics, more than $356 billion has been withdrawn over the past 15 months. Independent observers suggest that such moves are caused by the concern about internal political atmosphere and the fact that the Russian money is withdrawn abroad on a mass scale after economic sanctions related to Ukraine have been imposed. According to financiers, such a rapid money outflow from the UK triggers concern about the strength of the pound. Unfortunately, it's almost a certainty that investors are leaving the UK market. While it is not clear whether it is UK investors wanting to get into foreign assets, or foreign investors wanting to get out of the UK. The data does not show where the money is moving to and from, a net outflow or inflow is just logged. Analysts cited three main driving forces as the reason - Russian and Ukrainian instability, the Scottish referendum and the fear of post-election uncertainty. Concerning the Russian money, investors began to withdraw it last year after the Ukrainian crisis led to sanctions imposing. Separately, Russian President Vladimir Putin’s appeal has affected the situation. The President announced financial amnesty and ordered native oligarchs “to refund money homeward."

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