Russia in the world flows of foreign direct investment

This article deals the recent trends in global foreign direct investment (FDI), the role and place of Russia in this process. The author indicates the following modern trends in global FDI: the increasing role of developing countries as well as transitive countries (including Russia) in FDI flows; the growing role of regional groupings and state-owned TNCs in global FDI. The article stresses the long-term trend of steady increase of services share in the world FDI at the expense of decreasing share of manufacturing and extracting industries. The author came to the conclusion that during last decade the role of Russia in the world market of FDI increased substantially. Nevertheless, if to take into account the process of offshorization of Russian FDI flows, the “real” role of Russia in world FDI will be much less, than the “pure” statistics says. The article concludes, that future FDI flows to and from Russia will be under uncertainties due to geopolitical factors, particularly, regional Russian-Ukrainian conflict as well as mutual sanctions between Russia and western countries.

Russia, foreign direct investment (FDI), TNC, offshorization, mergers and acquisitions