Russia in the international movement of capital: adaptation to new conditions

The article examines the impact of external sanctions and the Russian Federation’s response measures on cross-border capital flows. An analysis of the international investment position shows that after a record capital outflow through all channels in 2022, this process is slowing down, while other investments are seeing an inflow. Positive dynamics are also observed in Russian investments abroad. Despite increased external pressure, including through secondary sanctions, all participants in foreign economic activity are adapting to the new conditions. The governing bodies have formed a set of measures that allow for fairly effective control and regulation of capital flows. Most foreign companies in various forms remain in the Russian Federation or transfer production to friendly countries while maintaining the Russian market. Russian businesses are restructuring their assets, transferring them to other jurisdictions, buying companies abandoned by foreign owners, and looking for new markets and stock exchanges. At the same time, the adoption of mutual restrictions on cross-border capital flows has negative consequences and risks for the Russian economy. These include: increased volatility of the ruble due to the reduced influence of the financial account, increased debt burden; falling stock market liquidity; problems with enterprise management after the transition to Russian owners, technological backwardness, etc.