For the first time in its history, Russia has become the third largest global recipient of FDI flows according to the UNCTAD Global Investment Monitor. In 2013, FDI flows into Russia reached a record of 94b USD, which represents an 83% increase compared to the preceding year. This boom was mainly caused by the British company BP aquiring a 18.5% stake in Rosneft as part of Rosneft's acquisition of TNK-BP for the sum of 57b USD. In 2013, Russia gained 20 places in the yearly Doing Business Report of the World Bank, becoming one of the most dynamic coutries among the BRICS.
Although FDI flux had considerably increased since the beginning of the 2000s, their share in the GDP (1.5%) remains small given the country's growth and the potential fo the Russian economy. For the most part, these are circular investments. Although over the last few years, Russia has implemented positive economic reforms, the state's administrative problems, corruption and the uncertainties of the rule of law remain significant.
|Russia||Eastern Europe & Central Asia||United States||Germany|
|Index of Transaction Transparency*||6.0||7.0||7.0||5.0|
|Index of Manager’s Responsibility**||2.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||6.0||9.0||5.0|
|Index of Investor Protection****||4.7||5.9||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||55,084||50,588||79,262|
|FDI Stock (million USD)||454,949||496,396||575,658|
|Performance Index*, Ranking on 181 Economies||19||-||-|
|Potential Index**, Ranking on 177 Economies||6||-||-|
|Number of Greenfield Investments***||384||319||266|
|FDI Inwards (in % of GFCF****)||13.4||11.3||17.0|
|FDI Stock (in % of GDP)||24.0||24.5||27.2|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: January 2015