
Direct foreign investments (PIIs) in the Russian economy fell 70% in 2014 and amounted to $ 19 billion, the UN Trading and Development Conference report (UNCTAD).
The sanctions of Western countries against Russia, the conflict in Ukraine and poor forecasts for GDP growth scared investors from transition economies, which include former Soviet republics, the authors of the text noted. In addition, in the case of Russia, an unusually high base of 2013 played a role, when the Rosneft transaction and the British BP in the amount of $ 55 billion were calculated.
If in 2013, Russia in PII ranked third after the United States and China, in the past the country was outside the first dozen. The first place in direct investments from abroad in 2014 was taken by the PRC ($ 128 billion), followed by Hong Kong ($ 111 billion) and the USA ($ 86 billion). In general, in the world, the indicator decreased by 8% - to $ 1.26 trillion.
Direct foreign investments are investments in a business in another country in order to further participate in the management of the asset. Direct investments are distinguished from portfolio, which imply a more passive position of the investor.
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