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01-16-2006 RBC News - In 2005, the inflow of private capital into Russia exceeded the outflow of capital for the first time ever, Alexander Zhukov, the Deputy Prime Minister of Russia, said at Russian President Vladimir Putin's meeting with the government on Monday. Earlier, the outflow of capital from the country reached up to $25 billion a year, and "today's situation is a sign of positive changes in Russia's investment climate," Mayak radio quoted Zhukov as saying. Private capital inflow into Russia stood at $300 million last year, against an outflow of $8 billion in 2004, the Central Bank of Russia reported last week. In the first quarter of last year, net capital inflow in the private sector was reported at $400 billion. A net outflow of $4.3 billion was registered in the second quarter, a net inflow of $8.1 billion – in the third quarter and a net outflow of $3.9 billion was reported in the fourth quarter of last year. Net inflow of capital in the banking sector made $5.3 billion in 2005, while an outflow of $4.9 billion was reported in the sector of non-financial companies and households. In December 2005, the international consulting company AT Kearney rated Russia among the world's six most attractive countries in terms of foreign direct investment (in March, Russia was ranked 11th). China remained in the lead for the fourth straight year. India was second, followed by the United States; Britain remained fourth, Poland was ranked fifth, and Russia – sixth. Experts noted an increasingly growing investor interest in East European markets. Hungary was ranked 11th, the Czech Republic – 12th, and Romania – 25th. In contrast, West European countries are losing their position. From 2000 to 2004, at least three West European nations were named among the top ten countries, but only two remained last year – Britain, ranked fourth, and Germany, rated ninth.