Russia may soften capital controls from 2006

Russia may soften limits on capital transactions from next year, a year earlier than planned, Finance Minister Alexei Kudrin said on Tuesday.
"We are discussing this possibility (with the Central Bank), but haven't taken any decision yet. The final decision will depend on the Central Bank," he told reporters.
"This will represent a certain liberalisation for the money market, but there are threats linked to a possible massive inflow of speculative capital. We are currently evaluating these concerns," he added.
Last year, the Central Bank introduced new rules under which firms must put some money on special reserve accounts as a condition for bringing funds into Russia and taking them out. A certain percentage of the sum coming to Russia must be put in a special bank account for six months, and for up to 15 days when the money is leaving the country.