Page 37 - RUSRptOct18

4.4 Fixed investment
Russia -Fixed capital investment 2011 2012 2013 2014 2015 2016 2017
Gross fixed capital (% of GDP)
21.49 21.55 21.78 21.25 20.75 21.05 /
GDP: Gross fixed investment capital formation, (local currency)
13,982,500 15,223,900 15,077,000 16,436,100 16,812,800 18,112,400 19,944,000
source: Rosstat, CEIC
President Putin's 2018 May Decree included the goal of raising the investment-to-GDP ratio to 25% by 2024 . Deputy finance minister Andrei Ivanov has since clarified that Russia needs about RUB21 trillion ($300bn) in investment, and that companies should contribute about RUB8 trillion of that amount. A wide variety of proposals have been made concerning the funding and targeting of this additional investment. Last month saw the publication of "Belousov's list" of 14 large industrial firms to be taxed on windfall profits totalling about RUB500bn. The government ultimately balked on capture of those profits, however, and instead the listed firms agreed to invest in projects that benefit society.
The identification of such projects will involve the joint cooperation of the finance ministry, the presidential administration, the contributing firms and the Russian Union of Industrialists and Entrepreneurs (RSPP ). Russia has no shortage of potential investment targets. Media reports note, for example, that the price tag for Russia's revised national digitalisation programme for 2019–2024 has climbed to around RUB1.2 trillion and that cost of the economic development ministry's infrastructure programme now stands at around RUB7 trillion . Officials hope that both efforts will be partly funded out of the federal budget and partly by corporations, including those in the private sector. In addition, firms face added costs in complying with new rules on ID coding of goods and data storage in compliance with the Yarovaya anti-terrorism amendments. The finance ministry has proposed encouraging
37 RUSSIA Country Report October 2018 www.intellinews.com