The number of foreign investments in Russia rose to a five-year high


Russia last year attracted 201 investment projects from abroad — against 125 in the previous year, the increase was 61%, the largest among the top 10 countries by total number of projects attracted foreign direct investment (FDI), says consultancy EY. The last time so much foreign investment attracted to Russia in 2010, follows from the review of the EY attractiveness Survey Europe”, presented today at the St. Petersburg international economic forum.

The largest number of projects in 2015, according to EY, has attracted UK (1065), Germany (946) France (598). Russia in this rating was the eighth.

Data EY do not coincide with the statistics of the Bank of Russia, according to which foreign direct investment in Russia decreased in 2015 by 78%. But EY was rated by FDI in monetary terms, and the number of projects and the number of created jobs to them. Despite the increase in the number of such projects, the number of created by these investments jobs in Russia was 25% lower than in 2014, against 18.2 13.7 thousand thousand Average number of jobs per project amounted to 68 (in 2014, 146).

Top 5 foreign investors by number of projects in Russia in 2015 — Germany (36 projects), USA (29) France (20), Italy and China (12). Leaders in the number of jobs created — the United States (almost 3 million), Germany (slightly more than 2 million), Japan (1.5 million), China (1.35 thousand) and Poland (950 jobs). In General, investors from Western Europe in the past year it has invested in 106 projects in Russia — a record number since 2005, the authors of the EY report.

According to the Central Bank, foreign direct investment in Russia decreased in 2015, 78%, and investments from foreign countries fell even more — by 80.3%. In particular, investments from the USA decreased by 71%, France 26%, Italy — 54%, from China — 55%.

German friends

But direct investments from Germany to Russia, according to the Bank, in 2015 increased four times — from $350 million to $1.42 billion According to research by EY, the number of running Germany Russian projects increased from 11 in 2014 to 36 in 2015, the number of jobs increased to 2 million — from 350 a year earlier.

German business quickly adapts to difficult situations, explain the leadership of Germany on the results of the study, the Chairman of the Russian-German chamber of Commerce Matthias schepp At the same time, he said, no sense of insecurity that has arisen because of the conflict between Russia and the West, investment rates would be even higher. It should also be noted that the plans for the year 2015 was formed 2-3 years ago, shapp said, and in spite of political risks, now is a good time for foreign investors, because the purchase of assets (factories, real estate) — was almost two times cheaper.

In the case of German firms plays a role and the fact that they started early localization of production — before it became a “buzzword”, says Matthias schepp Because of this, the current situation in some companies there are even export opportunities. For example, the Continental exports of tires produced in Russia, in Western Europe, Scandinavia and China, thereby offsetting the decline in the Russian market, where plummeting car sales.

According to EY, the most attractive region for investment in Russia was the production — it was 171 project from 201, and 96% of all jobs created. The list of projects in EY could not provide.

The number of projects increased, and the number of jobs has decreased — that is, it really is about small businesses. “Perhaps someone here carries the production to avoid sanctions in the case of dual-use goods,” says Finance Professor resh Oleg Shibanov. But it is very difficult to interpret this data without knowing the specific projects, he said. “For large projects, the state closely watches everyone can see what’s going on with the same “Bashneft”. And capital-intensive production, where you need a large cash infusion may not be protected to the end,” he says.

Of these projects, which have become attractive for foreign business in Russia, is a research and development, because engineers and IT specialists are cheaper by international standards, says Shibanov. But a new production oriented to the domestic market, is the “big question”, he says.

The quality of the workforce in Russia is relatively high, and there are Western companies, including German, which left, for example, from India to develop software here, but this trend has been around for several years — just now it became even cheaper, says Matthias schepp