Zee Beam News

WASHINGTON, October 25 (RIA Novosti, Alexei Berezin) - The Russian Minister of Industry and Energy said Tuesday that capital outflow in the country, expected to reach $8-9 billion this year, is proof that Russian business is venturing out in foreign stakes. "The outflow of capital ... is an absolutely legal process, which to a large extent denotes Russian companies' investment in certain projects and structures overseas," Viktor Khristenko said in Washington. The minister also said the process was normal and proved that Russian business, after succeeding domestically, had expanded to foreign venues. However, Khristenko cautioned against returning the same funds ventured by Russian companies abroad to Russia under the banner of foreign investment. "We must improve legislation and create sounder financial and banking systems to reduce risks causing the return of funds with the earmark of foreign investors," he said. Last week, Chairman of the Central Bank Alexei Ulyukayev said the net outflow of private capital could come in at less than the $9 billion expected in 2005. He said the net outflow of capital aggregated $2.8 billion in the first nine months of this year, a much lower rate than that logged for the same period last year.