MOSCOW—Capital flight from Russia accelerated in March, despite Vladimir Putin's re-election to the presidency, which officials had hoped would allay concerns about political risk and slow the torrent of money leaving the country.
"This is coming from domestic businesspeople sending their money out of the country, either to avoid corruption or because they have no place to invest it here," said Alexander Morozov, chief economist at HSBC in Moscow, warning that they aren't likely to reverse this year. The outflows could be a problem for Mr. Putin as he returns to the presidency and seeks to boost economic growth and investment.
"This is coming from domestic businesspeople sending their money out of the country, either to avoid corruption or because they have no place to invest it here," said Alexander Morozov, chief economist at HSBC in Moscow, warning that they aren't likely to reverse this year. The outflows could be a problem for Mr. Putin as he returns to the presidency and seeks to boost economic growth and investment.
From his Wikipedia profile:
Mikhail Borisovich Khodorkovsky, born 22 June 1963 in Moscow is a former Russian oligarch and businessman. In 2004, Khodorkovsky was the wealthiest man in Russia and one of the richest people in the world, ranked 16th on Forbes list of billionaires.
Khodorkovsky worked his way up the Communist apparatus during the Soviet years, and began several businesses during the era of glasnost and perestroika. After the dissolution of the Soviet Union, he accumulated wealth through the development of Siberian oil fields as the head of Yukos, one of the largest Russian companies to emerge from the privatization of state assets during the 1990s.
He was arrested on October 25, 2003 to appear before investigators as a witness, but within hours of being taken into custody he was charged with fraud. The government under Vladimir Putin then froze shares of Yukos shortly thereafter on tax charges. The state took further actions against Yukos, leading to a collapse of the company's share price and the evaporation of much of Khodorkovsky's wealth. He was found guilty and sentenced to nine years in prison in May 2005. While still serving his sentence, Khodorkovsky and business partner Platon Lebedev were further charged and found guilty of embezzlement and money laundering in December 2010, extending his prison sentence to 2017.
There is on-going debate about whether the trials and sentencing were politically motivated.
Khodorkovsky worked his way up the Communist apparatus during the Soviet years, and began several businesses during the era of glasnost and perestroika. After the dissolution of the Soviet Union, he accumulated wealth through the development of Siberian oil fields as the head of Yukos, one of the largest Russian companies to emerge from the privatization of state assets during the 1990s.
He was arrested on October 25, 2003 to appear before investigators as a witness, but within hours of being taken into custody he was charged with fraud. The government under Vladimir Putin then froze shares of Yukos shortly thereafter on tax charges. The state took further actions against Yukos, leading to a collapse of the company's share price and the evaporation of much of Khodorkovsky's wealth. He was found guilty and sentenced to nine years in prison in May 2005. While still serving his sentence, Khodorkovsky and business partner Platon Lebedev were further charged and found guilty of embezzlement and money laundering in December 2010, extending his prison sentence to 2017.
There is on-going debate about whether the trials and sentencing were politically motivated.
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