Russia has an investment climate that is complex to control and generally unstable. The disadvantages for foreign direct investment in Russia are: note: – Foreign direct investment is a form of foreign direct investment in which a parent company creates a new business in a foreign country by building new operational facilities from scratch. According to UNCTAD`s 2020 Global Investment Report, inflows to the Russian Federation increased significantly in 2019, reaching $31.7 billion, up from $13 billion in 2018 (up 139.9). In the same year, DL inventories amounted to approximately $463 billion, unchanged from 2010 levels. The value of cross-border mergers and acquisitions has increased due to significant transactions in the mineral resources and internet industry (Global Investment Trends Monitor, UNCTAD, 2019). The main investment countries are Cyprus, the Netherlands, Bermuda, Luxembourg, the United Kingdom and Ireland. The most important sectors are extractive industries, manufacturing, financial and insurance, wholesale and retail trade, administrative and service activities, and real estate. The share of IDIs in GDP remains relatively low, given the country`s growth and economic potential, and investment in labour capital accounts for a significant share of total FDI. Russia has made economic reforms in recent years, but administrative problems, corruption and uncertainties related to the stability of the region remain major challenges. Russia has passed a law authorizing the confiscation of foreign state assets on its own territory, in response to the confiscation of Russian property by European countries in the Yukos case. According to the Institute of International Finance (IIF), Russia ranks last among the 23 emerging economies in terms of “real” FDI, with net flows averaging 0.2% of GDP between 2015 and 2018.
Russia ranks 28th (out of 190 countries) in the World Bank`s Doing Business 2020 ranking, an increase of 3 places over the previous year. Russia`s main assets are its rich natural resources (oil, gas and metals) and its large and skilled workforce. On this page: Di in numbers | What to keep in mind if you invest in Russia | Protecting foreign investment| | procedures Foreign Real Estate and Land Office | Investment aid | | investment opportunities Areas where there are fewer investment opportunities | for more information, see Globaltrade.net, the directory of international commercial service providers, on foreign investment in Russia. Source: Central Bank of Russia – Latest data. © Export Enterprises SA, All Rights Reserved. Last updated: December 2020 . Many investors still see Russia as underexploited. Among the advantages for directly di in Russia include: Note: The larger the index, the more transparent the terms of the transactions. The larger the index, the more personally the manager is responsible. The larger the index, the easier it will be for shareholders to take legal action.