And how much of that goes to the country’s budget, let alone to the citizens, and how much gets stuffed into offshore accounts and real estate in western countries?
The west solved that problem by effectively doing capital controls for Russia. Now that Russia has been decoupled from SWIFT, moving money out is pretty hard.
From what I understand, Russian companies that are doing business with Europe and USA (such as aforementioned oil corporations) do so via direct exchange at a stock market, no swift required. Likewise, offshoring can be done via cash, precious metals, stocks or other methods
There are always ways to try and get money out of a country, but the west made it as difficult as possible to do so. And the result has been that money is indeed staying in Russia which resulted in a big increase in business activity as IMF now openly admits.
And how much of that goes to the country’s budget, let alone to the citizens, and how much gets stuffed into offshore accounts and real estate in western countries?
The west solved that problem by effectively doing capital controls for Russia. Now that Russia has been decoupled from SWIFT, moving money out is pretty hard.
From what I understand, Russian companies that are doing business with Europe and USA (such as aforementioned oil corporations) do so via direct exchange at a stock market, no swift required. Likewise, offshoring can be done via cash, precious metals, stocks or other methods
There are always ways to try and get money out of a country, but the west made it as difficult as possible to do so. And the result has been that money is indeed staying in Russia which resulted in a big increase in business activity as IMF now openly admits.