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June 14, 2019 www.intellinews.com I Page 8
UK declined notably (from 32 to 19 and from 8 to 2, respectively).
Business portal RBC notes that the data in Ernst & Young report does not correspond to the official Central Bank of Russia (CBR) data, which also accounts for investment and loans from domestic offshore-based businesses. The CBR also does not account for investment of the subsidiaries of foreign companies in Russia.
Foreign direct investment (FDI) in the share capital of Russian non-financial sector companies in 2018 declined by $6.5bn (outflow of $22.4bn versus inflow of $15.9bn), which was the lowest indicator since 1997, according
to data from the Central Bank of Russia (CBR) cited by RBC in April.
The inflow of $15.9bn in the capital of Russian companies was 2.5-fold below the average over the past ten years, the CBR estimated. Both 2017 and 2016 saw an inflow of $18.2bn and $9.7bn, respectively.
"Nevertheless, it is important to note that FDI has never played an important role as a driver of Russian investment or growth, even during the best times – like in 2007 – FDI had a share of just 2% of Russian GDP," BCS Global Markets commented on the CBR date release on April 9.