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From abroad with interest -- Moscow amnesty hopes to lure fortunes back into economy

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From abroad with interest -- Moscow amnesty hopes to lure fortunes back into economy

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Rich Russians will be able to repatriate capital they have hidden abroad, without fear of legal pursuit.

The government in Moscow has approved an amnesty aimed at encouraging the return of billions in foreign currency to Russia’s economy. The offer is for a limited time only: January to July next year. Finance Minister Alexei Koudrin said that citizens who declared income secreted outside the country, and paid tax on it (of 13%), would escape punitive sanctions which would otherwise apply. Many Russians, rich and poor, still operate in the shadow economy. By some estimates, net private capital outflow approached nine billion euros last year. Officials say it could be equally high this year. Cash and other assets owned abroad are said to total around 250 billion euros. The goal of the amnesty is to improve the investment climate for Russians at home.