Page 33 - RusRPTApr19

Moscow is leading among Russian cities in attracting private investment. “If we talk about investments in fixed assets, an unprecedented trend has been observed over the past year - more than 15% growth,” he said. According to him, about 25% of investment in urban infrastructure is Moscow’s money. For every ruble of urban investment accounts for 3-3.5. private investment, explained Efimov. As of October 1, 2018, the volume of accumulated foreign direct investment in Moscow was estimated at $ 237.9 billion. Now Moscow accounts for 14% of the total Russian investment in fixed assets and about 50% of Russian foreign direct investment, the deputy mayor’s press service reported.
The resource sector accounted for the bulk of fixed investment, which has always been the case in Russia. In 2018, the resource industry funded 23.3% of gross fixed investment (24% in 2017) while transport and communications held a 19.1% share, and manufacturing – 16.7%. Almost 81% of investment came from local sources; 48.6% was funded by domestic private businesses, 18.2% by the state, 10.8% by JVs and 8.3% by foreign investors.
The data reflects the recent incorporation of Novatek’s Yamal LNG project into Rosstat’s construction and GDP dynamics. Quarterly GDP data – early April – will also show revisions to 2017 and 2018 quarterly growth.
Data on investment mirrors similar upward revisions made earlier by Rosstat to its controversial upgrade to 2.3% growth in 2018 based on construction growth revisions. The changes were linked by the Ministry of Economic Development to the incorporation of the Yamal LNG project that was put into operation by Novatek in 3Q18.
33 RUSSIA Country Report April 2019 www.intellinews.com