It is necessary to improve business climate by raising the level of property rights protection in the country to stimulate capital inflow and simultaneously reduce its outflow, according to Sergey Grigoryan, Deputy Director of Association of Russian Banks analytical department.

“Business goes where it feels comfortable. In Russia as in any post-Soviet country this problem remains urgent and requires solution,” Grigoryan told July 20 Yerevan-Moscow TV bridge on Capital Outflow; Post-Soviet Space.

According to forecasts, capital outflow from Russia will total $ 35 bln this year. The problem of capital outflow is pressing for neighboring countries as well.

In turn, Head of Alternative Armenian analytical center, Doctor of Economics, Tatul Manaseryan added that if in Russia’s context billions are concerned, in Armenia even a million worth amount outflow has an essential impact on economy.

Moreover, if Russia encounters capital outflow, it is partially compensated by direct foreign investments inflow, whereas in Armenia the reverse process is ruled out, that is, capital inflow is, in fact, episodic, which is a problem for ensuring economic security of the country,” Manaseryan said.