Tim Fernholz wonders whether sanctions are increasing capital flight from Russia:
Russia’s had a real problem with capital flight in recent years, as its wealthiest citizens and corporations have moved assets to tax havens and wealthy economies to avoid instability and political interference in Russia. (The erstwhile shareholders of Yukos, the oil company that the Kremlin seized and broke up in the mid-2000s, just won a $50 billion compensation claim in the Hague.) That left Putin plaintively asking oligarchs to bring back their cash, please. No dice: Capital flight has increased this year, already exceeding each of the last two years in preliminary data for the first two quarters of 2014. Is that the fault of the sanctions? In part—few investors want their money to be trapped if a new iron economic curtain is raised.