EDB: more than half of direct investments from Russia are concentrated in Europe

EDB: more than half of direct investments from Russia are concentrated in Europe


The majority of Russian direct investment accounted for by Italy, Germany and the UK. Besides the EU, recipients of investments from Russia are Turkey, which accounted for 9.1%, and Iraq (8,1%), as well as India, Pakistan and Bangladesh.

MOSCOW, 4 Jan. More than half of the Russian direct investment goes to countries of Europe, most of which are in Italy, Germany and the United Kingdom, said in a research article Centre for integration studies of the Eurasian development Bank (EDB), courtesy of the press service of the Bank.

EDB is an international financial organization established by Russia and Kazakhstan in January 2006, participating States are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

“Interesting is the fact that more than half of the Russian direct investment (FDI) goes to countries in Europe. The share of Italy has reached 15%, Germany exceeded 9%, UK 6%, Bulgaria — 5%. In Europe, the member countries of the EU is Serbia” — are words of the Director of the Center Yevgeny Vinokurov.

Outside the EU, the ten largest recipients of Russian investments include Turkey, whose share is 9.1%, and Iraq (8,1%), as well as India, Pakistan and Bangladesh.

“It is noteworthy that Russia is gradually to the “neighborhood effect” loses its meaning. For 2009-2014 by more than 5 percentage points has decreased Russia’s share in FDI stock in Ukraine and Moldova, but also in Belarus, Kazakhstan, Azerbaijan, Uzbekistan, Kyrgyzstan and Mongolia”, — the expert specifies.

The Russian capital has become more active outside of neighboring countries, he said.

As before, the leaders on the volume of investment in Eurasia beyond the CIS are quite predictable. In the first place — LUKOIL, the top ten includes three other oil and gas companies as “Gazprom”, “Rosneft” and “Zarubezhneft”. Investors from Russia are also interesting telecommunications, financial and transport sectors.

Hope for China

Russian and Kazakhstani investments outside the EEU will continue to stagnate in 2016, but is expected to increase investment from China, said Vinokurov.

“Investors will not be urgent to get rid of assets, but also to increase them will not be focusing on the needs of their businesses in their native countries,” he said.

Outbound direct investment of companies from the countries of the EAEC grew steadily through 2013 and 2014 are stagnating, the article notes. The volume of direct investments of the EAEU countries in Eurasia over the last 7 years increased by 38 billion dollars, more than doubled, and amounted at the end of 2014 71 billion dollars.

While 92% of capital was exported from Russian investors, 7.7% of investors from Kazakhstan. Data for the end of 2015 has not yet been calculated.

“Despite the volatility and uncertainty, investment expansion of Asian countries in the EEU economy has paused. There is reason to believe that the growth trend of FDI from Asian countries to the countries of the EEU continues, the relative share of Asian investment in the EEU will grow,” says Vinokurov.

The main role in this process will be led by Chinese investors who seek to make a reality of the prisoners in 2014-2015 memoranda and preliminary agreements. Chinese corporations – especially government — will expand its expansion across a range of areas.

“It is very important that the Chinese investments will go not only in the oil and gas industry, where they were concentrated until recently”, — the expert expects.