Russia Ranked 11th in Europe in Terms of Attractiveness for Foreign Investors
OREANDA-NEWS. Russia ranked 11th among countries from Europe which are most attractive for foreign direct investment, as a study of EY showed, the results of which will be presented on June 3 at the St. Petersburg International Economic Forum (SPIEF-2021).
Foreign investors made investments in 141 projects in Russia in 2020, but the general volume of FDI (foreign direct investment) still decreased by 26%, notes EY.
The FDI indicator in Russia is compared to the overall dynamics in other European countries: the drop in FDI in European countries averaged 21%.
The number of FDI projects in Russia in 2020 approached the indicators of 2014. At the same time, the coronavirus pandemic had an impact comparable in strength to the sanctions shock of 2014, said Alexander Ivlev, EY Managing Partner for CIS Countries.
Almost 99% of projects that started in Russia in 2019 continued to develop in 2020, while in Europe almost 30% of projects were frozen.
In the list of countries investing in the Russian economy, Germany ranked first in 2020, as in 2019, although the volume of FDI from this country decreased by 28% to 26 projects.
The second place was shared by China and the United States, each country has invested in 15 Russian projects. FDI from China declined by 32% and from the United States by 25%.
Agriculture ranked first in terms of FDI in Russia in 2020, followed by machinery and equipment manufacturing. The most demanded regions for FDI are Moscow and the Moscow Region.