Wealth exported overseas shrinks the Russian economy
Approximately 80% of Russia’s economic wealth was moved overseas according to leading academic research.
A huge percentage of Russia’s economy is today dispersed overseas. This is the conclusion of a research conducted the last years by Anastasia Nesvetailova, Director of the Political Economy Research Centre at City University in London.
According to the researcher, these funds were sent offshore and away from the Russian government’s supervision, in tax havens spreading from Luxembourg until the British Virgin Islands.
Nesvetailova found that 14 out of the 20 largest Russian private firms are registered offshore, primarily in Cyprus and the Netherlands, in a process that started since the 80’s and accelerated during the last decade.
“It’s not done for tax reasons, as would normally be the case, but because the ultimate owners of assets don’t want anyone to know who they are, or what they own.”
- Anastasia Nesvetailova, City University, London.
Even though Vladimir Putin has offered to provide full amnesty for anyone who wishes to repatriate his assets in Russia, it is considered quite unlikely to happen at a broad scale in the near future. Russia’s economy is expected to shrink by 3.8% in 2015.
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