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Russian money flees to Estonia

Staff writer |
The amount of Russia's direct investments in Estonia has increased in the H1 2014, commented economic analysts of four major banks at a debate.

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"We see that Russian investors want to invest here right now even more," said the chief economist at Nordea Bank Tonu Palm. He added that Estonian real estate continues to be a safe haven for Russian investments, LETA/Delfi Ärileht reports.

Swedbank's chief economist Tonu Mertsina also added that the share of Russia's direct investments in Estonia during the first half of the year has rather improved.

"It is clear that Russian capital flees from the country and the closest civilized society is here," said economic analyst at SEB Ruta Arumäe.

LHV Bank's economic expert Heido Vitsur said about Western investors, that if Estonia becomes, due to the Russian crisis, the Eastern border of Europe where one cannot get through, then the interest in investing here will disappear.

The second problem he pointed out was workforce. Finnish entrepreneurs who find the 10 people and small companies whom they need can manage here. "But how to guarantee bigger investments adequate workforce? I do not see a good solution in either place," admitted Vitsur.

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