World Bank: Capital outflow from Russia could reach 150bn

World Bank: Capital outflow from Russia could reach 150bn

MOSCOW -- If the crisis over Ukraine escalates capital outflow from Russia could reach USD 150 billion in 2014, the World Bank predicted under its "high-risk scenario."

This figure would be USD 85 billion under the low-risk scenario, the organization said in a new report.

The World Bank in December predicted that Russia's economy would grow at 2.2 percent, but now says that even if the effect of the crisis is limited, the figure would only reach 1.1 percent this year, and 1.3 in 2015.

Under the high-risk scenario, Russia could see a 1.8 percent drop in GDP this year, according to the report.

"If the conflict escalates, uncertainty could rise around sanctions from the West and Russia's response to them, leading to further worsening of the consumer and business climate," said the World Bank.

The report notes that Russia's GDP growth already dropped to 1.3 from 3.4 percent the year before, and warns that the lack of structural reforms had led to an erosion of business and consumer confidence.