Foreign investments in Russia fall to a 15-year low
Pravda Ukraine
Foreign investments in Russia continue to rapidly decline, reaching their lowest point in the last 15 years by October 2024.
Source: The Moscow Times, with reference to the Central Bank of Russia
Details: In the first three quarters of 2024, foreign investors withdrew another US$44 billion in direct investments from the real sector of the economy, bringing the total volume down to US$235 billion.
In 2023, Russia lost US$80 billion in foreign direct investments (FDI), and in 2022, the first year of the Russo-Ukrainian full-scale war, the loss amounted to US$138 billion.
Over the past three years, the total volume of foreign direct investments, which stood at nearly US$500 billion before Russia’s full-scale invasion of Ukraine, has halved to US$262 billion.
Although Kremlin leader Vladimir Putin spoke about “maximum openness” to investors from BRICS countries and encouraged them to invest in Russia, the Central Bank’s statistics show no influx of capital.
For example, the Chinese government – the largest trading partner of Russia, with relations Putin calls “strategic” – has prohibited local companies from investing in Russia’s oil and gas sector, refused to invest in the Power of Siberia-2 project, and instructed automotive companies not to build factories in Russia. [The Power of Siberia-2 is a proposed gas pipeline project that would transport natural gas from Russia to China via Mongolia – ed.]
Background:
- China will make it harder for Russian businesses to purchase equipment and chemicals.
- In the first three quarters of 2024, China overtook Europe as the main market for Russian pipeline gas.
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