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5.3 FDI
Russia -FDI 2012 2013 2014 2015 2016 2017 Mar-2018
Foreign direct investment (BoP) (USD mn)
50,588 69,219 22,031 6,854 32,539 27,886 7,044
Foreign direct investment: % of GDP (BoP)
2.29 3.11 1.05 2.09 2.28 1.85 1.80
Foreign portfolio investment (USD mn)
19,312 748 -23,203 -12,872 3,020 9,330 3,728
source: CEIC
Foreign Direct Investment (FDI) into Russia bounced back in 2019, as investments flowing into the country jumped nearly fivefold amid fading risk of new sanctions from the US Russian firms received $26.9bn from overseas investors in 2019, according to data from Russia’s Central Bank. That was up from just $5.9bn in 2018, when international investors steered clear of Russia for fear of getting stung by US sanctions.
The net inflow — after taking away investments Russians made overseas — came in at $0.6bn, the first positive reading since 2016, but left the balance of Russia’s overseas investment largely unchanged. In 2018, Russia saw a $23bn net outflow of FDI.
Analysts put the rise in investment down to reduced risk of sanctions from the US last year. “The most important sanctions-related events in 2019 were the lifting of sanctions against EN+ and Rusal, and the symbolic sanctioning of Russian public debt, which did not live up to the hawks’ expectations,” RBC’s Economics Editor Ivan Tkachev wrote.
46 RUSSIA Country Report February 2020 www.intellinews.com
