Russia's capital flight slowing

MOSCOW, Sept. 27 (UPI) -- Russia's Central Bank has noted a slowing of capital flight from the country, the Interfax news agency reported Monday.

Net capital outflow reached a very worrying $4 billion in the first three months of 2004 but slowed to $3 billion in the second three-month period and has now dropped further, Alexei Ulyukanov, first deputy chairman of the Russian Central Bank told a conference organized by Brunswick UBS.

The net capital outflow in September is expected to be between $500 million and $1 billion, Ulyukanov said.

"I think capital outflow in 2004 will not exceed $12 billion. This forecast seems to me quite realistic," he said.