MOSCOW, May 22 (RIA Novosti) - Restrictions on capital flow in Russia will be abolished this summer, a deputy prime minister said Monday.
"We will lift the remaining restrictions on the movement of capital in Russia soon, probably as early as this summer," Alexander Zhukov said.
He said that the ruble was practically fully convertible in foreign trade operations.
"This summer the ruble will become fully convertible in all operations with capital," Zhukov said, adding that this move would boost the investment in the economy.
He also said capital inflow in 2005 had exceeded capital outflow for the first time and expressed the hope that the trend would continue in the future.
Finance Minister Alexei Kudrin said May 12 that Russia would lift all restrictions on capital inflow and outflow on July 1.
"We have accumulated the necessary potential to be considered a country with a fully stable currency, whose stability is guaranteed for many years ahead in any circumstances," Kudrin said.
The move is part of Russia's bid to make the ruble fully convertible by the middle of this year. President Vladimir Putin in his May 10 state of the nation address this year said work on ruble convertibility should be finished by July 1.
Kudrin said following Putin's speech that the measures set out in it were feasible.
According to a new law on currency regulations, the ruble will formally be considered convertible from January 1, 2007, when all restrictions on foreign currency operations will be abolished. But the law gives the Central Bank the right to impose certain restriction on capital transactions until that time.
