Russia’s Industrial Sector is in the Lead as Regards Attraction of Foreign Investments

In the first six months of 2012, $67.5bn was withdrawn abroad as income of foreign investors, as well as payments of interest on loans and loan repayments; the above figure is 17.4% lower than the index of the first six months of 2011.  In six months of 2012, the volume of the withdrawn capital amounted to 90.2% of the volume of foreign investments received, while in the same period of 2011, to 93.2%.

In the first six months of 2012, the sectorial structure of foreign investments attracted to the Russian economy was characterized by a considerable drop in investments in the financial sector (a decrease of 34.7% as compared to the first six months of 2011). So, the financial sector yielded the leading position to the industry.

In 2012, the volume of foreign investments in industry grew by 6.4% as compared to the first six months of 2011. Foreign investments in commerce and public catering increased by 28.5%, while those in deals with real property, by 15.8%. Simultaneously, investments in the transport sector and communications decreased by 44.6%.  

In the first six months of 2012, the most attractive industry for investments was still manufacturing  in which $18.5bn worth of investments was made  or 61.8%  of the aggregate investments in industry in general (in  the first six months of 2011 it was $16.3bn or 58.0%).

In the period under review, investments in production of primary products and iron and steel industry  decreased by 9.0% (to $10.4bn) and 10.6% (to $3.6bn), respectively. Investments in production of charred coal and petroleum products rose by 22.6% (to $7.5bn), while those in food industry, by 6.1% (to $1.12bn).

In the first six months of 2012, in the geographic structure of the attracted foreign investments the leading positions in the list of countries -- large exporters of capital to the Russian economy --  were still held by Switzerland whose investments in the Russian Federation amounted to $30.7bn or 41.1% of the aggregate volume of foreign investments in the Russian economy. It is to be noted that 89.4% of the above volume was invested in the financial sector.

In the first six months of 2012, as compared to the same period of 2011 the Netherlands increased its investments to $9.3bn (+18.6%), the UK to $7.5bn (+91.9%) and Luxemburg to $1.9bn (+38,3%). At the same time, Germany reduced its investments in the Russian economy to $2.6bn (-54.2%) and Cyprus, to $6.2bn (-17.9%).

In the first six months of 2012, with foreign investments in the Russian economy decreasing investments from Russia abroad  rose by 3.4%  to $69.5bn  (it is equal to 92.9% of the total volume of foreign investments in the Russian economy in January-June 2012, while in the first six months of 2011 that index  amounted to 76.6%). Switzerland accounted for 38.1% of that volume ($26.5bn), while Austria and the Netherlands, for 14.4% ($10.0bn) and 6.0% ($4.1bn), receptively. Russian investments in Cyprus and Belarus amounted to $6.6bn (9.5%) and $4.1bn (5.9%), respectively.

Е.М. Ilyukhina, Senior Researcher of the Structural Policy Department