19:09 GMT +3 hours26 November 2014
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South Ossetia conflict wipes $7bln off Russian market - Kudrin

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The armed conflict between Georgia and Russia over breakaway South Ossetia wiped $7 billion off the Russian stock market, Russia's Finance Minister Alexei Kudrin said on Sunday.
MOSCOW, August 17 (RIA Novosti) - The armed conflict between Georgia and Russia over breakaway South Ossetia wiped $7 billion off the Russian stock market, Russia's Finance Minister Alexei Kudrin said on Sunday.

Georgia launched major ground and air attacks to seize control of South Ossetia on August 8, prompting Russia to send in tanks and thousand of troops. Russia announced on August 12 a halt to its operation to force Georgia to accept peace.

According to Kudrin, capital outflow hit $6 billion on August 8 and another $1 billion on August 11.

Kudrin said net capital inflow in 2008 will be slightly below the $30-40 billion figure predicted by the Central Bank of Russia.

"Capital inflow will be slightly below the official forecast due to the persisting global financial crisis and certain political risks that have emerged recently and influenced foreign investors' behavior," Kudrin said.