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Ukrainian Unrest Raises Chances of Suspicious Capital Flight
By Colby Adams
printUkraine's widespread protests and weakened political stability are likely to prompt nervous investors and corrupt officials alike to move their money abroad, say economic analysts. Ukraine's President Viktor Yanukovych's decision late last month to withdraw the country from negotiations on a trade pact with the European Union sparked massive protests in the country, which risks defaulting on as much as $10 billion in foreign debt if it fails to secure financial aid from the Russian Federation or the International Monetary Fund. On Thursday, an EU diplomat told reporters that Yanukovych had reversed his position and would now sign a trade...
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Whatever the effectiveness of sanctions meant to sway Russia's involvement in Ukraine, one thing is certain: they've worsened the country's capital flight problem. By year's end, approximately $128 billion will have moved abroad, up from $63 billion in 2013, according to Russia's central bank.
Follow the headlines and you'll find an all too common story: the political winds shift, a leader is deposed and a fortune in dirty money is uncovered in a warren of offshore accounts. But why did no one stop the plundering sooner?
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