Russia investors flee after conflict

Investors have pulled funds out of Russia at the fastest rate since the country's 1998 debt crisis, in the wake of the conflict with Georgia, official figures have shown.

Official figures from the Central Bank of Russia showed yesterday that the country's foreign exchange reserves fell by $16.4bn in the week to August 15. It is the biggest fall since comparable figures began in 1998, though it is thought to be smaller than the withdrawals made by foreign investors in the wake of the Rouble crisis earlier in the late 1990s.

The drop also reflects the cash injected by the central bank to help stabilise the rouble last week as it plummeted against other currencies.