All articles tagged with #capital flight
Russians pulled about $3.4 billion from banks in the first two weeks of August, on top of $11.8 billion in June–July, as fears mount that Putin could seize funds to finance the war; fresh data show more than $9.4 billion left Russia in Q2 2026, worsening liquidity for banks and complicating government borrowing as Kyiv pressures infrastructure and industry.
Russians pulled about €24.4 billion from banks in the first seven months of 2026 as fears spread that the Kremlin could seize or freeze deposits to fund the war, with monthly cash outflows around 300 billion roubles and most major banks reporting deposit declines amid a deteriorating economy.
Bloomberg reports that several of Russia’s wealthiest businessmen have moved billions of dollars out of the country over the past year, shifting into cryptocurrency, gold, and overseas real estate as concerns over asset seizures, the economy, and war funding mount. Some are close to Putin, and asset seizures have occurred (e.g., Dmitry Kamenshchik). Two sources estimate tens of billions have left so far this year; sanctions complicate transfers, with channels like A7/A7A5 and PSB cited as routes. At a closed-door meeting, Putin reportedly urged contributions to the war, though the Kremlin said fundraising was voluntary.
Bloomberg reports that several of Russia’s wealthiest individuals, including Putin confidants, have shifted billions abroad over the past year amid sanctions and asset seizures. Wealth is moving into cryptocurrency, gold, and foreign real estate (notably in the UAE), with Gulf investments rising and assets flowing through private funds; tens of billions have left Russia this year, while some oligarchs still expand wealth overseas despite the war and sanctions.
Despite a surge in billionaire wealth, taxes on the ultra-rich remain well below the average, fueling a renewed push for wealth taxes. In California, a proposed one-time 5% levy triggered asset shifts by Brin, Page, and Sacks and drew strong opposition from Gov. Newsom, highlighting the political and logistical hurdles. Proponents push for a simple, flat-rate tax on billionaires with an exit tax to curb capital flight, while critics warn past wealth taxes were costly and evasive, with some favoring alternatives like higher inheritance taxes or treating capital gains as ordinary income.
Japan's bond market is experiencing rising long-term yields, sparking fears of capital outflows from the U.S. and a potential unwind of carry trades, which could lead to global market instability. The increase in yields is driven by structural factors and changing demand, raising concerns about a possible global financial crisis if confidence in safe assets erodes.
Two Nasdaq-listed online brokerages, Futu Holdings and Up Fintech Holding, are planning to remove apps from online stores in China that allow their customers to trade stocks overseas, amid tightening controls by Beijing on private firms, capital flight and data flows. Futu offers services to Chinese citizens who already hold dollars and other currencies in bank accounts abroad.
The Russian ruble fell to its lowest level in a year due to Moscow's weakening oil revenues and fears over capital flight. The ruble has fallen 4.4% this week against the dollar and 5.2% against the euro, running counter to a broader trend among global currencies, which have gained against the dollar in recent weeks.