The research note analyses the geographical profile of FDI of the Russian Federation, which is characterized by the prevalence of offshore entities and conduit (transshipment) countries. It puts forward a hypothesis about the traditional motives (tax minimization) and the non-traditional motives (insufficient safeguarding of legal business, poor level of financial market development, high incidence of monopolization) for this phenomenon. The hypothesis is supported by methodological and empirical arguments constructed against the background of trends and practices in the BRICS and developed economies.

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Geography of capital outflow and inflow to BRICS countries is considered. The prerequisites of capital outflow and inflow to these states are analyzed. The orientation of capital export and import from these countries to offshores and offshore-conduit states is underlined. The attempt is made to discover the reasons of high offshorization of BRICS countries' outflow and inflow of capital. Author' hypothesis explaining these reasons is put forward. It is based on the thesis of weak institutional structure of BRICS and other developing countries first of all insufficient protection of entrepreneurs, high level of shadow and criminal business as well as underdevelopment of civil law in these states.

The paper deals with the past, current and future situation in Russian capital outflow and inflow. The specific features of the past situation (2001-2013) were as follows: big scale of Russian participation in international capital movement; turnover of national capital between Russia and offshores; stable surplus of capital outflow over inflow; inadequacy of industrial structure of capital inflow to Russian needs. The current situation is characterized by such new features as radical cut in volumes of capital outflow and inflow, some decrease in its level of offshorization. In the mid-term the probability of continuation of current trends is high. In the long-term the mode of Russian participation in international capital movement will prima facie depend on prospects of realization of systematic reforms in the Russian economy.