No capital controls on Russia's agenda

For what must be the umpteenth time, yesterday Russian authorities, this time Presi-dent Putin himself, declared that capital controls are not on the agenda. The statement at first seems strange given that conditions have calmed notably from earlier in the year. 

However, the point was made in the context of a speech in which the Russian President remarked upon the achievements made year to date. President Putin seems to think that the worst of the crisis is now behind Russia and that in the coming quarters Russia can expect higher growth rates. 

"Indeed the President even noted that Russia experienced a net capital inflow for the first time since 2010. Given base effects, an increase in overall GDP growth rates is by no means impossible over the coming year. The difference lies in the degree or level of growth", says Commerzbank. 

The Russian economy will be hampered by long standing competitiveness issues, the effects of sanctions and a still low oil price. So, sure growth improvements can be seen, but they are unlikely to be large. Still, every little helps.