Vladimir Putin yesterday admitted that foreign capital inflows could fall by up to 45 per cent this year, but rejected suggestions that turmoil in Russia's financial markets was caused by the conflict in Georgia.
The Russian premier said the country was simply suffering from the same credit crisis affecting the rest of the world, but he acknowledged that foreign inflows might fall this year from $80bn in 2007 to $45bn or $50bn.
Mr Putin blamed Russia's outflow of capital on “speculative” moves by western institutions withdrawing funds because of the “mortgage crisis” in the US and Europe.
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