Page 40 - RusRPTOct21

4.4 Fixed investment
Russia -Fixed capital investment 2012 2013 2014 2015 2016 2017 Mar-2018
Investment (% of GDP)
24.3 22.9 22.0 21.4 22.5 23.5 15.3
GDP: Gross fixed investment capital formation (USD mn)
471,337 496,982 428,573 276,240 280,350 342,294 58,303
source: CEIC
Russian investment increased significantly in real terms in the first half of this year and was 5% higher than two years earlier,OFIT reports in its weekly report.
Investment by large and medium-sized enterprises and the state grew faster than all investments made since 2019 and their share of the value of all investment has risen for several years.
Investment in oil and gas production by large and medium-sized enterprises declined in the first half of the year to the point where it returned to two-year levels. Investment in the production of petroleum products also declined,ut was much higher than two years ago, following last year's strong rise.
Investment in the refining industry (excluding the production of petroleum products) increased rapidly, rising by a few per cent compared to the first half of 2019. Growth in investment in the processing industry haseen very strongly focused on metal processing (up a quarter from two years ago), while another investment-intensive manufacturing sector, the chemical industry, has reduced its investment (down a quarter from two years ago).
Investment growth in large public sector sectors such as health and education has slowed this year,but has risen several tens of per cent since two years ago.
“As a whole, last year's surge in publicudget investment expenditure is behind us. Instead, the government is drawing up a plan to launch funding for investment projects from the National Welfare Fund,”OFIT said. "According to the law, the fund may provide financing and investments in non-liquid assets, provided that the amount of the fund's liquid assets in relation to GDP muste at least 7% at the end of the following year. The fund's liquid assets have been slightly above this limit since spring 2020. Rising oil prices will bring more oil
40 RUSSIA Country Report October 2021 www.intellinews.com