MOSCOW, August 18 (RIA Novosti) - Net capital flight from Russia will total $8-$9 billion in 2005, Economic Development and Trade Minister German Gref said at a government session Thursday. According to the Finance Ministry and the Central Bank, net capital flight totaled $9.4 billion in 2004.
Gref said investment flow would increase in 2006-2008. "We believe that capital flight will start falling, and we should reach a positive balance of outflow and inflow," the minister said.
He pointed to a positive breakthrough in investment activity. The Central Bank and the Federal Service for State Statistics reported a decline in general investments but a substantial growth of 35% in direct investments in the first half of 2005.
The minister also spoke about a 30% growth of the securities market in January-July 2005.
