MOSCOW—Capital flight from Russia accelerated in March, despite Vladimir Putin's re-election to the presidency, which officials had hoped would allay concerns about political risk and slow the torrent of money leaving the country.
"This is coming from domestic businesspeople sending their money out of the country, either to avoid corruption or because they have no place to invest it here," said Alexander Morozov, chief economist at HSBC in Moscow, warning that they aren't likely to reverse this year. The outflows could be a problem for Mr. Putin as he returns to the presidency and seeks to boost economic growth and investment.
The Central Bank reported Wednesday that capital outflows reached $35.1 billion in the first quarter, nearly double the $19.8 billion seen a year earlier. The latest result was little changed from the fourth quarter of last year, when many economists blamed the outflow on concerns about political instability around Mr. Putin's return to the presidency and the huge anti-Kremlin demonstrations in Moscow in December.
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The central bank didn't give a monthly breakdown in Wednesday's figures, but using figures for January and February reported earlier, analysts estimated capital outflow for March at around $12.5 billion—up from $9 billion in the previous month.
The latest result also appeared higher than an estimate given a day earlier by central bank First Deputy Chairman Alexei Ulyukayev, who said March's figure would be in line with February's. Mr. Ulyukaev also forecast the outflows could reverse as early as May or June once Mr. Putin is inaugurated and installs his new government.
But Mr. Ulyukaev and other top officials have been forecasting a reversal of the capital outflows repeatedly over the past few years, only to see the trend continue.
Though estimated 2012 outflow figures were slightly lowered on Wednesday to $80.5 billion from a previous $84.2 billion, that altered figure was still the second-largest Russia has seen since the central bank began keeping records in 1994.
Higher prices for oil—Russia's chief export—in combination with the country's less than favorable investment climate, may be the chief cause of capital flight, said Yevgeny Gavrilenkov, chief economist at Troika Dialog.
"As long as we have a large current-account surplus, it will always be difficult to absorb extra oil money," he said. "Russia has too much money coming in, and it doesn't match the quality of our institutions."
Yulia Tsepliaeva, chief economist at BNP Paribas, said she expects the outflow to reverse in the coming months as political uncertainty fades. Plans to open the local government-bond market to foreign investors also could draw in new money, economists said.
Vladimir Putin, Russia, investment.The Central Bank, chief economist, chief economist, capital outflows, capital flight, the presidency, capital outflow, officials, officials, Alexander Morozov, oil—Russia, central bank, Moscow

John Crudele