WE NEED INVESTMENT
In the next 20 years, Russia needs $ 7 trillion of investments.
Every year Russia requires not less than $ 100 billion of direct investment for nearly all spheres of its economy. According to the Ministry of energy of the Russian Federation, only modernization of the fuel and energy complex for the period up to 2035 will require more than $ 3.2-3.3 trillion.
In 2014, in terms of attracting foreign direct investment Russia was in 16th place in the world (UNCTAD, 2014, p. 5).
Leading countries by foreign direct investment into Russia for the period from 01.01.2015 till 01.07.2015 (in billions US dollars):
Volume of investments
(billions, US dollars)
Source: The Central Bank of the Russian Federation
The geography of investment across regions is uneven. 80% of all foreign investments accounts for 10 subjects of the Russian Federation. Most of the investments come to Moscow and St. Petersburg and the surrounding areas.
Tyumen Oblast, Kaluga Oblast, Tatarstan Republic, Sakhalin Oblast, Arkhangelsk Oblast, Primorsky krai are also among the leading regions.
In fact, the share of the remaining 75 subjects of the Russian Federation accounts for only 20% of the total volume of foreign investments in the Russian economy. This means tremendous growth potential for their economies and the relatively easy access to markets of these regions for investors.
Russia opens wide opportunities for investment:
• basic production assets in Russia impaired significantly;
• Russian market has a low level of competition;
• the Russian Federation provides the protection of investors ' rights at the state level;
• the tax burden in Russia is lower than in many countries;
• preferential economic conditions for investors are created in Russia;
• there's a favorable investment climate in Russia;
• Russian law does not limit the amount of foreign direct investment and transfer of profits abroad for foreign investors.
The growth of Russia's GDP in 2014 was 0.6%. According to FocusEconomics, by 2019 Russian GDP growth is forecasted to 2.2%.
Inflation in Russia in 2014 amounted to 11.4%. By 2019, inflation is forecasted to decrease to 5.1%.
Gold and exchange currency reserves of Russia from year 2000 to 2015 increased more than 17 times: from 21 million to 361,6 billion US dollars.