MASSIVE CAPITAL FLIGHT CONTINUES.

Russia may not be ableto follow Kozyrev’s recommendations because it does not have effectivecontrol over the illegal outflow of capital. Rossiiskaya gazetareported July 4 that the outflow continues at the rate of$1-1.5 billion a month and that Russian authorities are virtuallypowerless to stop it. This money will return only when its ownersfeel secure and believe they can make a profit in Russia.

Russia’s Lukoil Expands Stake in Iraq.