Russian investors are increasingly diversifying their assets into overseas property as a result of unstable global markets, it has been reported.

According to the New York Times, an unfriendly business climate and ambiguous Russian economic policy, has contributed to an outflow of capital from Russia, with 46% wiped off the value of the country’s RTS index in the last week alone.

Amidst the negative news emanating out of the world capital markets, rating agency Standard & Poor’s has lowered the future credit rating of Russia and Moscow from “positive” to “stable”. The outflow of capital in August 2008 equaled 1% of the country’s GDP, or about $13billion.