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Friday, March 29, 2024

Economist Koltashov explained the reasons for the increase in Russian deposits in foreign banks

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According to the Central Bank, deposits of Russian citizens in foreign banks increased by 131 percent in the last year. What is the reason for this trend, said Vasily Koltashov, head of the Center for Political Economic Research at the New Society Institute.

In an interview with Radio 1, the economist noted that there are two main reasons why Russian citizens’ deposits abroad have increased so markedly. The first is that there is a special need to work not through Russian banks, but through banks of neutral, intermediary countries. The need for foreign banks arises when making purchases, transfers and other transactions.

The second reason is that a significant part of the Russian elite takes money to the West and hides from Russia’s “wrong” actions, as they believe. Trying to avoid sanctions, the big capital owners hastened to convert them into foreign currency. In particular, the largest Russian exporters resorted to the help of foreign banks.

Based on the foregoing, the expert stated that it should not be surprising that such a significant part of the money is abroad and that foreign banks are used so actively.

Source: Riafan

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