Foreign investments in Russia

Abstract

The article describes the amount, structure and dynamics of all types of foreign investments in Russia, it means foreign direct investments, portfolio investments and so-called the others investment (mainly credits). Special attention is paid to flows of foreign investments in last two years. In 2007 they reached the highest level in the history of the country, especially in case of FDI, which play the most important role in each economy. The trend has changed during the next year, in which flows of foreign investment into Russia (altogether) declined about 14 per cent. The most sudden decrease of the investment volume happened in case of portfolio investments. Foreign investors started to pull their money out of Russian stock exchanges in August of 2008 losing a confidence in Russian securities and local market. The mains reasons were: Russia’s involvement in the armed conflict in Georgia, deterioration in economic situation in the country and global financial crisis.