Russia's Massive Capital Outflows Reach Unprecedented $253 Billion in 2022

Russia experienced a record $239 billion in net capital outflows in 2022, four times higher than the previous year and 70% more than during the 2008 Global Financial Crisis. The outflows are attributed to the ongoing war in Ukraine and the strengthening of the US dollar against local currencies in emerging markets. Some of the capital likely flowed to neighboring countries where Russians have sought refuge. Despite a record high current account surplus of $227 billion in 2022, Russia's economy has been negatively impacted by stifled exports, a weak ruble, and the significant outflows.