Wednesday, December 12, 2012
Putin Backs Efforts to Force $1 Trillion Repatriation
By Scott Rose & Ilya Arkhipov - Dec 12, 2012 6:55 AM ET
Russian President Vladimir Putin threw his support behind efforts to repatriate capital by ending the use of offshore destinations by companies and forcing the highest ranking officials to relinquish cash and shares abroad.
Russiaa should proceed with anti-corruption legislation that would put limits on officials owning foreign bank deposits and securities, Putin said today in Moscow in his first state-of- the-nation address since returning to the presidency in May. The curbs would be expanded to top policy makers including the president, prime minister and their families, Putin said.
Putin and his allies are seeking to claw back as much as $1 trillion to reignite sagging economic growth and spur investment in new industries as the nation exhausts the potential of resource-based expansion. Economic growth is set to slow to 3.6 percent next year, compared with the average 7 percent growth Putin enjoyed during his first two terms in the Kremlin.
“How can you trust an official or politician who makes bold statements about the wellbeing of Russia, but then tries to move his funds, his cash, abroad?” Putin said. “Property abroad should be declared regardless, and officials should report its value and also the source of the income that allowed them to make that transaction.”
