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Russian Millionaires Keep 70% of Their Savings in Foreign Banks -- Study

The cause of Russia's enormous capital flight. 30,000 Russian millionaires keep $315bn of their $455bn abroad

Russian millionaires keep about 70% of their savings in foreign banks, according to "Private Banking in Russia 2018," a study conducted by Frank RG.

In the study conducted from April to October 2018, the company's experts analyzed financial assets of more than 30,000 Russians who have at least $1 mln in their accounts excluding real estate and working capital of their businesses. The study was based on the data from 11 Russian banks and their private banking divisions that specialize in providing services to wealthy clients.

The total amount of assets of the selected group of Russians was estimated at $455 bln. Of this amount $315 bln were kept abroad.

According to the company’s experts, in the first half of 2018, wealthy clients owned a capital of 7.72 trillion rubles ($117 bln). Of this amount 60% of funds were placed in foreign currency. According to the forecast, by the end of this year, the total amount of savings will grow by 22.3% to 8.67 trillion rubles ($132 bln). According to the forecast, by the end of 2019, the total amount of savings will increase to 10.06 trillion rubles ($153 bln), or by 16%.

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Earlier, the Bank of Russia raised its forecast for capital outflow from Russia in 2018 to $66 bln from $55 bln and lowered it to 2019 to $25 bln from $27 bln.

At the end of 2017, the net outflow of capital from Russia increased by 1.6 times compared with 2016 and amounted to $31.3 bln.

Source: TASS
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