Page 131 - RusRPTAug24

5.3 FDI
FDI in RUSSIA has collapsed over the past two years, reports BOFIT. As a consequence of war and sanctions, foreign direct investment (FDI) flows into Russia have dried up. Since 2022, the FDI figures released by the Central Bank of Russia (CBR) have been much less detailed than before. Nevertheless, the CBR figures show that the value of the total FDI stock in Russia has shrunk by nearly half since the invasion of Ukraine. At the end of 2021, the total stock of FDI in Russia was valued at around $500 billion. By the end of 2023, it had fallen to $280 billion.
UNCTAD figures show that the net inflow of foreign direct investment to Russia was substantially negative in 2022, i.e. investments were drawn out. Although net inflow turned slightly positive in 2023, it still was on its lowest level since 2003. Russia’s investment development has also been poor by international standards. The total value of greenfield FDI projects launched in Russia in 2022–2023 combined was just a tiny fraction of any single year in the previous two decades. The value of projects in Russia was smaller than e.g. in Afghanistan. The value of projects started in Ukraine, in contrast, was over four times that of Russia. In addition, the value of net cross-border mergers & acquisitions in Russia was significantly negative in 2022–2023. Russia ranked last globally according to this measure.
131 RUSSIA Country Report August 2024 www.intellinews.com